| For      the Fiscal Year Ended December 31, 2007 | Commission      File No. 001-31852 |
|--------------------------------------------------|------------------------------------|

| Delaware                                                            | 84-0617433                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

| Title      of each class            | Name      of exchange on which registered |
|-------------------------------------|-------------------------------------------|
| Common      Stock, $0.001 par value | American      Stock Exchange              |

----

| PART      I   |                                                                                               |   |
|---------------|----------------------------------------------------------------------------------------------------|--------|
| ITEM      1   | Business                                                                                           | 1      |
|          | Competition                                                                                        | 2      |
|          | Governmental      Regulation                                                                       | 3      |
|          | Environmental      Regulation                                                                      | 3      |
|          | Employees                                                                                          | 5      |
|          | Available      Information                                                                         | 5      |
| ITEM      1A  | Risk      Factors                                                                                  | 5      |
| ITEM      2   | Properties                                                                                         | 10     |
|          | Oil      and Gas Operations                                                                        | 10     |
|          | Minerals      Properties                                                                           | 14     |
| ITEM      4   | Submission      of Matters to a Vote of Security Holders                                           | 16     |
|          |                                                                                               |   |
| PART      II  |                                                                                               |   |
| ITEM      5   | Market      Price of the Registrant's Common Stock and Related Security Holder      Matters        | 17     |
|          | Performance      Graph                                                                             | 18     |
|          | Equity      Compensation Plan Information                                                          | 19     |
|          | Recent      Sales of Unregistered Securities                                                       | 19     |
| ITEM      6   | Selected      Historical Financial Data                                                            | 20     |
| ITEM      7   | Management's      Discussion and Analysis of Financial Condition                                   | 20     |
|          | Notice      Regarding Forward-Looking Statements                                                   | 20     |
|          | Overview                                                                                           | 20     |
|          | Critical      Accounting Policies                                                                  | 21     |
|          | Other      Significant Accounting Polices                                                          | 23     |
|          | Rig      Operations                                                                                | 25     |
|          | Mining      Activity                                                                               | 25     |
|          | Results      of Operations                                                                         | 26     |
|          | Financial      Condition                                                                           | 29     |
|          | Operating      Activities                                                                          | 30     |
|          | Investing      Activities                                                                          | 30     |
|          | Financing      Activities                                                                          | 30     |
|          | Liquidity      and Capital Resources                                                               | 30     |
| ITEM      8   | Financial      Statements                                                                          | 32     |
| ITEM      9A  | Controls      and Procedures                                                                       | 71     |
|          | Evaluation      of Disclosure Controls                                                             | 71     |
|          | Management’s      Report on Internal Control over Financial Reporting                        | 71     |
|          |                                                                                               |   |
| PART      III |                                                                                               |   |
| ITEM      10  | Directors      and Executive Officers of the Registrant                                            | 74     |
| ITEM      11  | Executive      Compensation                                                                        | 79     |
|          | Compensation      Committee Report                                                                 | 80     |
|          | Summary      Compensation Table                                                                    | 81     |
|          | Employment      Agreement with Our President                                                       | 81     |
|          | Aggregated      2007 Option Exercises and Year-End Values                                          | 82     |
|          | Option      Grants During the Fiscal Year Ended December 31, 2007 to Named Executive      Officers | 82     |
|          | Outstanding      Equity Awards Table to Named Executive Officers and    Directors                  | 83     |
|          | Compensation      of Directors                                                                     | 84     |
| ITEM      12  | Security      Ownership of Certain Beneficial Owners and Management                                | 85     |
| ITEM      13  | Certain      Relationships and Related Transactions                                                | 86     |
| ITEM      14  | Principal      Accountant Fees and Services                                                        | 86     |
| ITEM      15  | Exhibits      and Financial Statement Schedules                                                    | 87     |
|          |                                                                                               |   |
| SIGNATURES    | 88                                                                                                 |

----

| The      Company’s four industry segments are: |
|------------------------------------------------------|
|                                                 |   |
| -                                                    | Oil and gas operations      include our share of revenues from oil and gas wells on which TVOG serves      as operator, royalty income and production revenue from other partnerships      in which we have operating or non-operating interests.  It also      includes revenues for consulting services for oil and gas related      activities. |
|                                                 |   |
| -                                                    | Rig operations began in      2006, when the Company acquired drilling rigs and began operating them      through subsidiaries GVPS and GVDC.  Rig operations include      income from rental of oil field equipment. |
|                                                 |   |
| -                                                    | Minerals include the      Company’s mining and mineral prospects and operations, and expenses      associated with those operations.  In 2007, the Company recorded      minerals revenue from consulting services performed for the mining and      minerals industry, which are included on the operating statement as other      income. |
|                                                 |   |
| -                                                    | Drilling and      development includes revenues received from oil and gas drilling      and development operations performed for joint venture partners, including      the Opus-I drilling partnership. |
|                                                 |   |

| ·   | Tri-Valley      Oil & Gas Company (“TVOG”) operates the oil & gas      activities.  TVOG derives the majority of its revenue from oil      and gas drilling and turnkey development. TVOG primarily generates its own      exploration prospects from its internal database, and also screens      prospects from other geologists and companies.  TVOG generates      these geological “plays” within a certain geographic area of mutual      interest.  The prospect is then presented to potential      co-ventures.  The company deals with both accredited individual      investors and energy industry companies.  TVOG serves as the      operator of these co-ventures. TVOG operates both the oil and gas      production segment and the drilling and development segment of our      business lines. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Select      Resources Corporation (“Select”) was created in late 2004 to manage, grow      and operate the minerals segment of our business  lines. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Great      Valley Production Services, LLC, (“GVPS”) was formed in 2006 to operate      oil production services, well work over and drilling rigs, primarily for      TVOG.  Tri-Valley currently owns 90% of GVPS, and the remainder      is owned by outside investors. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Great      Valley Drilling Company, LLC (“GVDC”) was formed in 2006 to operate oil      drilling rigs, primarily in Nevada where Tri-Valley has 17,000 acres of      prospective oil leases.  However, because rig availability is      scarce in Nevada, GVDC has an exceptional opportunity to do contract      drilling for third parties in both petroleum and geothermal      projects.  For the time being GVDC, whose operation began in the      first quarter of 2007, expects its primary activity will be contract      drilling for third parties. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tri-Valley      Power Corporation is inactive at the present  time. |
|--------------------|---------------------------------------------------------------------|

----

|   | • | Unanticipated      hydrologic conditions, including flooding and periodic interruptions due      to inclement or hazardous weatherconditions. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|                   | BBL    | MCF     |
|------------------------|--------|---------|
|                   |   |    |   |   |
| December      31, 2007 | Oil    | 372,048 | Natural      Gas | 791,128 |
| December      31, 2006 | Oil    | 275,452 | Natural      Gas | 787,017 |
| December      31, 2005 | Oil    | 154,673 | Natural      Gas | 779,598 |

|                   | Year      Ended December 31, |
|------------------------|------------------------------|
|                   | 2007                         | 2006 | 2005 |
|                   |                         |   |   |
| Natural      Gas (MCF) | 45,928                       | 86,177 | 128,602 |
| Crude      Oil (BBL)   | 7,006                        | 6,600 | 17 |

|                  | Year      Ended December 31, |
|-----------------------|------------------------------|
|                  | 2007                         | 2006 | 2005 |
|                  |                         |   |   |   |   |   |
|                  | Gas      (Mcf)               | Oil      (BBL) | Gas      (Mcf) | Oil      (BBL) | Gas      (Mcf) | Oil* |
| Sales      Price      | $7.15                        | $58.23 | $6.45 | $57.10 | $7.00 | $44.34 |
|                  |                         |   |   |   |   |   |
| Production      Costs | $1.55                        | $16.28 | $1.41 | $15.23 | $0.73 | * |
|                  |                         |   |   |   |   |   |
| Net      Profit       | $5.60                        | $41.95 | $5.04 | $41.87 | $6.27 | * |

| Wells (1) | Acres (2) |
|-----------|-----------|
| Gross     | Net       | Gross | Net |
| 72        | 20.62     | 3,730 | 1,044 |

| (1)   | "Gross"      wells represent the total number of producing wells in which we have a      working interest.  "Net" wells represent the number of gross      producing wells multiplied by the percentages of the working interests,      which we own.  "Net wells" recognizes only those wells in which      we hold an earned working interest.  Working interests earned at      payout have not been included. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | "Gross"      acres represent the total acres in which we have a working interest; "net"      acres represent the aggregate of the working interests, which we own in      the gross acres. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|        | Year      Ended December 31, |
|-------------|------------------------------|
|        | 2007                         | 2006 | 2005 |
|        |                         |   |   |
| Exploratory |                         |   |   |
| Producing   | -0-                          | -0- | -0- |
| Dry         | -0-                          | -0- | 1 |
| Total       | -0-                          | -0- | 1 |
|        |                         |   |   |
| Development |                         |   |   |
| Producing   | -5-                          | -2- | -0- |
| Dry         | -0-                          | -0- | -0- |
| Total       | -5-                          | -2- | -0- |

| State      |   | Gross      Acres |   | Net      Acres |
|------------|--------|------------------|--------|----------------|
| California |   | 26,447           |   | 22,176         |
| Nevada     |   | 18,559           |   | 18,559         |

| Expires      in 2008 |   5,550      acres |
|----------------------|------------------------------|
| Expires      in 2009 |   3,618      acres |
| Expires      in 2010 | 22,985      acres            |
|                 |                         |

| Gross      Acres | Net      Acres |
|------------------|----------------|
| 28,720           | 27,926         |

| State  | Gross      Acres         | Net      Acres           |
|--------|--------------------------|--------------------------|
| Alaska |    11,080 |    11,080 |

|                       |
|----------------------------|
| Election      of Directors |
|                       |
|                       | FOR | ABSTAIN |   |
| F.      Lynn Blystone      | 18,682,991 | 1,083,187 |   |
| Milton      J. Carlson     | 18,695,290 | 1,070,888 |   |
| Loren      J. Miller       | 18,698,890 | 1,067,288 |   |
| Henry      Lowenstein      | 18,658,842 | 1,107,336 |   |
| William      H. Marumoto   | 18,671,842 | 1,094,336 |   |
| G.      Thomas Gamble      | 18,680,242 | 1,085,936 |   |
| Edward      M. Gabriel     | 18,689,898 | 1,076,280 |   |
| Paul      W. Bateman       | 18,688,998 | 1,077,180 |   |

|                                                                                 |       |      |      |
|--------------------------------------------------------------------------------------|------------|-----------|-----------|
| Vote      on Proposal – To amend the 2005 Stock Option and Incentive      Plan |
|                                                                                 |       |      |      |
|                                                                                 | FOR        | AGAINST   | ABSTAIN   |
|                                                                                 |       |      |      |
|                                                                                 | 10,343,253 | 3,081,016 | 1,041,749 |
|                                                                                 |       |      |      |

| Vote      to ratify the board’s and management’s actions and resolutions taken and      made since the previous shareholder meeting |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                            |       |   |   |
|                                                                                                                                            | FOR        | AGAINST | ABSTAIN |
|                                                                                                                                            |       |   |   |
|                                                                                                                                            | 17,762,007 | 941,887 | 1,062,284 |
|                                                                                                                                            |       |   |   |

|                |              |                |   |
|---------------------|-------------------|---------------------|--------|
|                | Sales      Prices | Closing      Prices |   |   |
|                | High              | Low                 | High   | Low |   |   |
|                |              |
| 2007                |              |
| Fourth      Quarter | $8.20             | $5.85               | $8.20  | $6.12 |   |
| Third      Quarter  | $8.20             | $6.00               | $8.15  | $6.27 |   |
| Second      Quarter | $9.36             | $7.37               | $9.17  | $7.56 |   |
| First      Quarter  | $9.67             | $6.80               | $9.37  | $7.15 |   |
|                |              |
| 2006                |              |
| Fourth      Quarter | $10.20            | $6.75               | $10.07 | $6.77 |
| Third      Quarter  | $8.01             | $5.80               | $7.49  | $5.84 |
| Second      Quarter | $9.50             | $5.52               | $9.01  | $5.63 |
| First      Quarter  | $8.77             | $7.30               | $8.69  | $7.35 |

----

|                        | 2002   | 2003   | 2004   | 2005   | 2006   | 2007   |
|-----------------------------|--------|--------|--------|--------|--------|--------|
| Tri-Valley      Corporation | $100   | $314   | $874   | $556   | $678   | $529   |
| S      & P 500 Index    | $100   | $128   | $142   | $149   | $172   | $182   |
| AMEX      Oil Index         | $100   | $129   | $170   | $236   | $290   | $387   |
|                        |   |   |   |   |   |   |

----

|                                                            | Total      securities to be issued upon exercise of outstanding options or vesting of      restricted stock |   | Securities      remaining available for future issuance under equity compensation plans      (excluding securities reflected in column (a)) |
|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|  Plan      category                                        | Number                                                                                                      |   | Weighted-average      exercise price                                                                                                        |   |
|                                                            | (a)                                                                                                         |   | (b)                                                                                                                                         |   | (c) |
| Equity      compensation plans approved by security holders     | 2,727,350                                                                                                   |   | $3.76                                                                                                                                       |   | 1,831,500 |
|                                                            |                                                                                                        |   |                                                                                                                                        |   |   |
| Equity      compensation plans not approved by security holders | 240,000                                                                                                     |   | $0.50                                                                                                                                       |   | - |
|                                                            |                                                                                                        |   |                                                                                                                                        |   |   |
| Total                                                           | 2,967,350                                                                                                   |   | $3.50                                                                                                                                       |   | 1,831,500 |

----

|                                                                               |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |
|------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|
|                                                                               |   | 2007   |       |   | 2006   |   |       | 2005   |   |   | 2004       |   |   | 2003   |       |
| Income      Statement Data:                                                        |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |
| Revenues                                                                           |   | $      | 11,016,107 |   |   | $      | 4,936,723  |   |   | $      | 12,526,110 |   |   | $      | 4,498,670  |   |   | $ | 6,464,245 |   |
| Operating      Income (Loss)                                                       |   | $      | (8,746,830 | )      |   | $      | (5,881,276 | )      |   | $      | (4,919,707 | )      |   | $      | (1,097,999 | ) |   | $ | 456,109 |   |
| Loss      from discontinued    operations                      |   | $      | -          |   |   | $      | (4,774,840 | )      |   | $      | (4,810,364 | )      |   | $      | (73,006    | ) |   | $ | - |   |
| Gain      on disposal of    discontinued      operations       |   | $      | -          |   |   | $      | 9,715,604  |   |   | $      | -          |   |   | $      | -          |   |   | $ | - |   |
| Income      (loss) before   minority      interest                  |   | $      | (8,746,830 | )      |   |   | (940,512   | )      |   |   | (9,730,071 | )      |   |   | (1,171,005 | ) |   |   | 456,109 |   |
| Minority      interest                                                             |   | $      | (139,939   | )      |   |   | (27,341    | )      |   |   | -          |   |   |   | -          |   |   |   | - |   |
|  Net      loss                                                                |   | $      | (8,606,891 | )      |   | $      | (913,171   | )      |   | $      | (9,730,071 | )      |   | $      | (1,171,005 | ) |   | $ | 456,109 |   |
| Basic      Earnings per share:                                                     |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss      from continuing    operations                        |   | $      | (0.35      | )      |   | $      | (0.25      | )      |   | $      | (0.22      | )      |   | $      | (0.05      | ) |   | $ | 0.02 |   |
| Income      (loss) from dis-    continued      operations, net |   | $      | -          |   |   | $      | 0.21       |   |   | $      | (0.21      | )      |   | $      | (0.01      | ) |   | $ | 0.00 |   |
| Basic      Earnings Per Share                                                      |   | $      | (0.35      | )      |   | $      | (0.04      | )      |   | $      | (0.43      | )      |   | $      | (0.06      | ) |   | $ | 0.02 |   |
|                                                                               |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Balance      Sheet Data:                                                           |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Property      and Equipment, net                                                   |   | $      | 16,232,653 |   |   | $      | 12,076,043 |   |   | $      | 13,635,981 |   |   | $      | 1,778,208  |   |   | $ | 1,543,121 |   |
| Total      Assets                                                                  |   | $      | 25,254,895 |   |   | $      | 28,654,125 |   |   | $      | 19,738,730 |   |   | $      | 14,473,326 |   |   | $ | 8,341,782 |   |
| Long      Term Obligations                                                         |   | $      | 2,355,707  |   |   | $      | 2,963,562  |   |   | $      | 4,528,365  |   |   | $      | 6,799      |   |   | $ | 16,805 |   |
| Minority      Interest                                                             |   |   | 249,945    |   |   |   | 5,410,746  |   |   |   | -          |   |   |   | -          |   |   |   | - |   |
| Stockholder's      Equity                                                          |   | $      | 12,112,184 |   |   | $      | 11,232,872 |   |   | $      | 7,572,720  |   |   | $      | 6,796,903  |   |   | $ | 1,851,783 |   |
|                                                                               |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |

----

----

|                                       | 2007              | 2006                | 2005              |
|--------------------------------------------|-------------------|---------------------|-------------------|
|                                       | $                 | %                   | $                 | % | $ | % |
| Oil      and gas                           |              |                |              |   |   |   |
|    Sale      of oil and gas | $761              | 8%                  | $1,030            | 23% | $    901 | 7% |
|    Royalty      income      | -                 | -    | -                 | -    | 1 | -    |
|    Partnership      income  | 30                | 1%                  | 45                | 1% | 30 | -    |
| Total      oil and gas revenue             | 791               | 9%                  | 1,075             | 24% | 932 | 7% |
|                                       |              |                |              |   |   |   |
| Rig      operations                        | 2,727             | 28%                 | 873               | 20% | - | -    |
|                                       |              |                |              |   |   |   |
| Drilling      and development              |   6,132 | 63%                 |   2,497 | 56% |   11,422 | 93% |
|                                       |              |                |              |   |   |   |
| Total      revenues                        | $9,650            | 100%                | $4,445            | 100% | $12,354 | 100% |
|                                       |              |                |              |   |   |   |
|                                       |              |                |              |   |   |   |
|                                       |              |                |              |   |   |   |
|                                       |              |                |              |   |   |   |

----

|                          | 2007                | 2006                         | 2005               |
|-------------------------------|---------------------|------------------------------|--------------------|
|                          |                |                         |               |
| Oil      and gas              | $      659          | $    397 | $  3,299 |
| Rig      operations           | 2,142               | 726                          | -                  |
| Minerals                      | 618                 | 644                          | 3,663              |
| Drilling      and development | 5,011               | 1,990                        | 9,268              |
|                          |                |                         |               |
| Total      cost and expenses  |   $ 8,430 | $ 3,757                      | $ 16,230           |
|                          |                |                         |               |

|                               | 2007                         | 2006                              | 2005                          |
|------------------------------------|------------------------------|-----------------------------------|-------------------------------|
|                               |                         |                              |                          |
| Oil      and gas                   | $   132  | $   830       | $(2,248)                      |
| Rig      operations                |   585         |    307        | -                        |
| Minerals                           | (618)                        | (465)                             | (3,610)                       |
| Drilling      and development      |   1,121       |     507  |    2,155  |
|                               |                         |                              |                          |
| Total      operating income (loss) | $1,220                  | $1,179                       | $(3,704)                      |
|                               |                         |                              |                          |

| ·   | Cash      flow from operating activities, |
|--------------------|-------------------------------------------|

| ·   | Borrowings      from financial institutions (which we typically  avoid), |
|--------------------|--------------------------------------------------------------------------|

| ·   | Debt      offerings, which could increase our leverage and add to our need for cash      to service such debt (which we typicallyavoid), |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Additional      offerings of our equity securities, which would cause dilution of our      common stock, |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Sales      of portions of our working interest in the prospects within our      exploration program, which would reduce future revenues from its      exploration program, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sale      to an industry partner of a participation in our exploration      program, |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | Sale      of all or a portion of our producing oil and gas properties, which would      reduce future revenues. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

----

|                                                                    | Page   |
|-------------------------------------------------------------------------|--------|
|                                                                    |   |
| Report      of Independent Auditor                                      | 30     |
|                                                                    |   |
| Consolidated      Balance Sheets at December 31, 2007 and 2006          | 31     |
|                                                                    |   |
| Consolidated      Statements of Operations for the Years Ended          |   |
| December      31, 2007, 2006 and 2005                                   | 33     |
|                                                                    |   |
| Consolidated      Statements of Changes in Shareholders' Equity for the |   |
| Years      Ended December 31, 2007, 2006 and 2005                       | 34     |
|                                                                    |   |
| Consolidated      Statements of Cash Flows for the Years Ended          |   |
| December      31, 2007, 2006 and 2005                                   | 35     |
|                                                                    |   |
| Notes      to Consolidated Financial Statements                         | 37     |
|                                                                    |   |
| Supplemental      Information about Oil and Gas Producing               |   |
| Activities      (Unaudited)                                             | 61     |

----

----

|                                                                          |   |       |       |   |       |   |       |
|-------------------------------------------------------------------------------|--------|------------|------------|--------|------------|--------|------------|
|                                                                          |   | ___2007___ |       |   | ___2006___ |
| ASSETS                                                                        |   |       |       |   |
| Current      assets                                                           |   |       |       |   |       |   |       |
| Cash                                                                          |   | $          | 3,955,610  |   |       | $      | 11,457,427 |   |
| Cash      restricted to OPUS I use                                            |   |       | 3,712,083  |   |       |   | 4,140,788  |   |
| Accounts      receivable, trade                                               |   |       | 313,521    |   |       |   | 377,278    |   |
| Prepaid      expenses                                                         |   |       | 12,029     |   |       |   | 42,529     |   |
|                                                                          |   |       |       |   |       |   |       |   |   |
| Total      current assets                                                     |   |       | 7,993,243  |   |       |   | 16,018,022 |   |
|                                                                          |   |       |       |   |       |   |       |   |   |
| Property      and equipment, net                                              |   |       |       |   |       |   |       |   |   |
| Proved      properties                                                        |   |       | 2,143,907  |   |       |   | 1,407,925  |   |
| Unproved      properties                                                      |   |       | 2,414,843  |   |       |   | 2,792,340  |   |
| Rigs                                                                          |   |       | 6,731,758  |   |       |   | 5,371,593  |   |
| Other      property and equipment                                             |   |       | 4,942,145  |   |       |   | 2,504,185  |   |
|                                                                          |   |       |       |   |       |   |       |   |   |
| Total      property and equipment, net (Note 3)                               |   |       | 16,232,653 |   |       |   | 12,076,043 |   |
|                                                                          |   |       |       |   |       |   |       |   |   |
| Other      assets                                                             |   |       |       |   |       |   |       |   |   |
| Deposits                                                                      |   |       | 338,772    |   |       |   | 309,833    |   |
| Investment      in marketable securities (Note 13)                            |   |       | 440,000    |   |       |   | -          |   |
| Investments      in partnerships (Note 5)                                     |   |       | 17,400     |   |       |   | 17,400     |   |
| Goodwill                                                                      |   |       | 212,414    |   |       |   | 212,414    |   |
| Other                                                                         |   |       | 20,413     |   |       |   | 20,413     |   |
|                                                                          |   |       |       |   |       |   |       |   |   |
| Total      other assets                                                       |   |       | 1,028,999  |   |       |   | 560,060    |   |
|                                                                          |   |       |       |   |       |   |       |   |   |
|           Total      assets |   | $          | 25,254,895 |   |       | $      | 28,654,125 |   |
|                                                                          |   |       |       |   |       |   |       |   |   |
|                                                                          |   |       |       |   |       |   |       |   |   |

----

| LIABILITIES AND STOCKHOLDERS’      EQUITY                                                                 |   |              |         |   |       |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------|--------------|--------|------------|--------|
|                                                                                                            |   | December      31, |         |
|                                                                                                            |   | ___2007___        |         |   | ___2006___ |
|                                                                                                            |   |              |         |   |       |
| Current      liabilities                                                                                        |   |              |         |   |       |
| Notes      payable                                                                                              |   | $                 | 402,003      |   |       | $      | 619,069 |   |
| Notes      payable – related parties                                                                      |   |              |         |   |       |   | 501,036  |   |   |   |
| Deferred      revenue                                                                                           |   |              | 242,163      |   |       |   | - |   |
| Accounts      payable and accrued expenses                                                                      |   |              | 5,699,153    |   |       |   | 2,237,116 |   |
| Amounts      payable to joint venture participants                                                              |   |              | 281,419      |   |       |   | 280,815 |   |
| Advances      from joint venture participants, net                                                              |   |              | 3,671,927    |   |       |   | 5,408,909 |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
|     Total      current liabilities                                                          |   |              | 10,296,665   |   |       |   | 9,046,945 |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
| Non-Current      Liabilities                                                                                    |   |              |         |   |       |   |   |   |   |   |   |
| Due      to joint ventures                                                                                      |   |              | -            |   |       |   | - |   |
| Asset      Retirement Obligation                                                                                |   |              | 240,394      |   |       |   | 216,714 |   |
| Long-term      portion of notes payable – related parties                                                 |   |              |         |   |       |   | 698,963  |   |   |   |
| Long-term      portion of notes payable                                                                         |   |              | 2,355,707    |   |       |   | 2,047,885 |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
| Total      non-current liabilities                                                                              |   |              | 2,596,101    |   |       |   | 2,963,562 |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
|      Total      liabilities                                                            |   |              | 12,892,766   |   |       |   | 12,010,507 |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
| Minority      interest                                                                                          |   |              | 249,945      |   |       |   | 5,410,746 |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
|  Stockholders’      equity                                                                           |   |              |         |   |       |   |   |   |   |   |   |
| Common      stock, $.001 par value; 100,000,000 shares                                                          |   |              |         |   |       |   |   |   |   |   |   |
| authorized;  25,077,184      and 23,546,655 issued and                                                |   |              |         |   |       |   |   |   |   |   |   |
|  outstanding      at December 31, 2007, and 2006                                                           |   |              | 25,077       |   |       |   | 23,407 |   |
|            Less:      common stock in treasury, at cost, |   |              |         |   |       |   |   |   |   |   |   |
|   100,025      shares at December 31, 2007 and 2006.                                                  |   |              | (13,370      | )      |       |   | (13,370 | ) |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
| Capital      in excess of par value                                                                             |   |              | 37,090,714   |   |       |   | 28,692,780 |   |
| Additional      paid in capital – warrants                                                                |   |              | 782,729      |   |       |   | 247,313 |   |
| Additional      paid in capital – stock options                                                           |   |              | 1,800,642    |   |       |   | 1,262,404 |   |
| Accumulated      deficit                                                                                        |   |              | (27,586,553  | )      |       |   | (18,979,662 | ) |
| Accumulated      other comprehensive income                                                                     |   |              |  12,945 |   |       |   |  - |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
|     Total      stockholders’ equity                                                   |   |              | 12,112,184   |   |       |   | 11,232,872 |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
|  Total      liabilities, minority interest and stockholder’s    equity                          |   | $                 | 25,254,895   |   |       | $      | 28,654,125 |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |
|                                                                                                            |   |              |         |   |       |   |   |   |   |   |   |

----

|                                                                                       |   |                   |       |   |                   |   |       |                   |   |
|--------------------------------------------------------------------------------------------|--------|------------------------|------------|--------|------------------------|--------|------------|------------------------|--------|
|                                                                                       |   | ___ 2007 ___ |       |   | ___ 2006 ___ |   |       | ___ 2005 ___ |   |
| Revenues                                                                                   |   |                   |       |   |                   |   |       |                   |   |
| Sale      of oil and gas                                                                   |   | $                      | 761,279    |   |                   | $      | 1,029,606  |                   |   | $ | 901,159 |   |
| Rig      income                                                                            |   |                   | 2,726,692  |   |                   |   | 873,368    |                   |   |   | - |   |
| Royalty      income                                                                        |   |                   | -          |   |                   |   | -          |                   |   |   | 883 |   |
| Partnership      income                                                                    |   |                   | 30,000     |   |                   |   | 45,000     |                   |   |   | 30,000 |   |
| Interest      income                                                                       |   |                   | 282,785    |   |                   |   | 72,707     |                   |   |   | 118,608 |   |
| Drilling      and development                                                              |   |                   | 6,131,613  |   |                   |   | 2,497,256  |                   |   |   | 11,422,234 |   |
| Other      income                                                                          |   |                   | 1,083,738  |   |                   |   | 418,786    |                   |   |   | 53,226 |   |
|                                                                                       |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Total      revenues                                                                        |   |                   | 11,016,107 |   |                   |   | 4,936,723  |                   |   |   | 12,526,110 |   |
|                                                                                       |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Costs      and expenses                                                                    |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Mining      exploration costs                                                              |   |                   | 391,255    |   |                   |   | 510,583    |                   |   |   | 4,112,717 |   |
| Production      costs                                                                      |   |                   | 430,068    |   |                   |   | 388,700    |                   |   |   | 93,429 |   |
| Drilling      and development                                                              |   |                   | 5,010,799  |   |                   |   | 1,799,792  |                   |   |   | 9,267,621 |   |
| Rig      operating expenses                                                                |   |                   | 1,374,649  |   |                   |   | 566,649    |                   |   |   | - |   |
| General      and administrative                                                            |   |                   | 10,372,892 |   |                   |   | 6,110,921  |                   |   |   | 3,521,311 |   |
| Interest                                                                                   |   |                   | 258,829    |   |                   |   | 396,672    |                   |   |   | 118,047 |   |
| Investment                                                                                 |   |                   | 203,782    |   |                   |   | -          |                   |   |   | - |   |
| Depreciation,      depletion and amortization                                              |   |                   | 1,238,733  |   |                   |   | 585,439    |                   |   |   | 242,527 |   |
| Impairment      of acquisition costs                                                       |   |                   | 481,930    |   |                   |   | 459,243    |                   |   |   | 90,165 |   |
| Total      costs and expenses                                                              |   |                   | 19,762,937 |   |                   |   | 10,817,999 |                   |   |   | 17,445,817 |   |
|                                                                                       |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Loss      from continuing operations, before income taxes and discontinued      operations |   |                   | (8,746,830 | )      |                   |   | (5,881,276 | )                      |   |   | (4,919,707 | ) |
| Tax      provision                                                                         |   |                   | -          |   |                   |   | -          |                   |   |   | - |   |
|                                                                                       |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Loss      from continuing operations, before discontinued operations                       |   |                   | (8,746,830 | )      |                   |   | (5,881,276 | )                      |   |   | (4,919,707 | ) |
|                                                                                       |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Loss      from discontinued operations (Note 12)                                           |   |                   | -          |   |                   |   | (4,774,840 | )                      |   |   | (4,810,364 | ) |
| Gain      on disposal of discontinued operations (Note 12)                                 |   |                   | -          |   |                   |   | 9,715,604  |                   |   |   | - |   |
| Loss      before minority interest                                                         |   | $                      | (8,746,830 | )      |                   | $      | (940,512   | )                      |   | $ | (9,730,071 | ) |
| Minority      interest                                                                     |   |                   | (139,939   | )      |                   | $      | (27,341    | )                      |   |   | - |   |
| Net      Loss                                                                              |   | $                      | (8,606,891 | )      |                   | $      | (913,171   | )                      |   | $ | (9,730,071 | ) |
|  Basic      net loss per share:                                                       |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Loss      from continuing operations                                                       |   | $                      | (0.35      | )      |                   | $      | (0.25      | )                      |   | $ | (0.22 | ) |
| Income      (loss)  from discontinued operations, net                            |   | $                      | -          |   |                   | $      | 0.21       |                   |   | $ | (0.21 | ) |
| Basic      loss per common share                                                           |   | $                      | (0.35      | )      |                   | $      | (0.04      | )                      |   | $ | (0.43 | ) |
|                                                                                       |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Weighted      average number of shares outstanding                                         |   |                   | 24,723,766 |   |                   |   | 23,374,205 |                   |   |   | 22,426,580 |   |
|                                                                                       |   |                   |       |   |                   |   |       |                   |   |   |   |   |
| Potentially      dilutive shares outstanding                                               |   |                   | 28,061,401 |   |                   |   | 26,377,537 |                   |   |   | 25,030,468 |   |
|                                                                                       |   |                   |       |   |                   |
| No      dilution is reported since net income is a loss per SFAS    128                    |   |                   |       |   |                   |   |       |                   |   |

----

|                                       |       |                |                |            | Additional           |       |          |      |                 |                    |
|--------------------------------------------|------------|---------------------|---------------------|-----------------|----------------------|------------|---------------|-----------|----------------------|-------------------------|
|                                       |       |                |                |            | Paid      in         |       |          |      |                 |                    |
|                                       | Total      |                |                | Capital      in | Warrants      &  | Common     | Accumu-       |      |                 |                    |
|                                       | Common     | Treasury            | Par                 | Excess      of  | Stock                | Stock      | lated         | Treasury  | Other                | Stockholders’     |
|                                       | Shares     | Shares              | Value               | Par Value       | Options              | Receivable | Déficit  | Stock     | Comprehensive Income | Equity                  |
|                                       |       |                |                |            |                 |       |          |      |                 |                    |
| Balance      at December 31, 2004          | 21,836,052 | 100,025             | 21,836              | 15,125,607      | -                    | (750)      | (8,336,420)   | (13,370)  |                 | 6,796,903               |
|                                       |       |                |                |            |                 |       |          |      |                 |                    |
| Issuance      of common stock              | 970,124    | -                   | 970                 | 9,199,610       | -                    | -          | -             | -         |                 | 9,200,580               |
| Stock      issuance cost                   | -          |                |                | (432,067)       | -                    | -          | -             | -         |                 | (432,067)               |
| Common      stock receivable               | -          |                |                | -               | -                    | 750        | -             | -         |                 | 750                     |
| Drilling      program equity               | -          |                |                | 1,736,625       | -                    | -          | -             | -         |                 | 1,736,625               |
| Net      loss                              | -          |                |                | -               | -                    | -          | (9,730,071)   | -         |                 | (9,730,071)             |
|                                       |       |                |                |            |                 |       |          |      |                 |                    |
| Balance      at                            |       |                |                |            |                 |       |          |      |                 |                    |
| December      31, 2005                     | 22,806,176 |   100,025 | $  22,806 | $25,629,775     | -                    | -          | $(18,066,491) | $(13,370) |                 | $  7,572,720  |
|                                       |       |                |                |            |                 |       |          |      |                 |                    |
| Issuance      of common stock              | 740,479    |                | 601                 | 3,373,745       | -                    | -          | -             | -         |                 | 3,374,346               |
| Stock      issuance cost                   | -          | -                   | -                   | (310,740)       | -                    | -          | -             | -         |                 | (310,740)               |
| Warrants      (see note 10)                | -          | -                   | -                   | -               | $  247,313 | -          | -             | -         |                 | 247,313                 |
| Stock      Based Compensation (see note 5) | -          | -                   | -                   | -               | 1,262,404            | -          |          |      |                 | 1,262,404               |
| Net      loss                              | -          | -                   | -                   | -               | -                    | -          | (913,171)     |      |                 | (913,171)               |
| )Balance      at                           |       |                |                |            |                 |       |          |      |                 |                    |
| December      31, 2006                     | 23,546,655 | 100,025             | $  23,407 | $28,692,780     | $1,509,717           | -          | $(18,979,662) | $(13,370) |                 | $  11,232,872 |

| Issuance      of common stock              | 1,530,529  |    | -                   | 9,479,833   | -                      | -      | -             | -         |  -      | 9,479,833               |
|--------------------------------------------|------------|---------|---------------------|-------------|------------------------|--------|---------------|-----------|--------------|-------------------------|
| Stock      issuance cost                   | -          | -       | 1,670               | (1,081,900) | -                      | -      | -             | -         | -            | (1,080,230)             |
| Warrants      (see note 10)                | -          | -       | -                   | -           | $  1,073,654 | -      | -             | -         | -            | 1,073,654               |
| Stock      Based Compensation (see note 5) | -          | -       | -                   | -           | -                      | -      | -             |      | -            |                    |
| Other      Comprehensiveincome             | -          | -       | -                   | -           | -                      | -      | -             | -         |  12,945 | 12,945                  |
| Net      loss                              | -          | -       | -                   | -           | -                      | -      | (8,606,891)   | -         |  -      | (8,606,891)             |
|                                       |       |    |                |        |                   |   |          |      |         |                    |
| Balance      atDecember      31, 2007      | 25,077,184 | 100,025 | $  25,077 | $37,090,713 | $2,583,371             | -      | $(27,586,553) | $(13,370) |  12,945 | $  12,112,183 |

----

|                                                                                               |   | For      the Years Ended December 31, |       |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|
|                                                                                               |   | 2007                                  |       |   | 2006 |   |   | 2005 |   |
|                                                                                               |   |                                  |       |   |   |   |   |   |   |
| CASH      PROVIDED (USED) BY OPERATING ACTIVITIES                                                  |   |                                  |       |   |   |   |   |   |   |
| Net      loss                                                                                      |   | $                                     | (8,606,891 | ) |   | $ | (913,171 | ) |   | $ | (9,730,071 | ) |
| Loss      from discontinued operations                                                             |   |                                  | -          |   |   |   | 4,774,840 |   |   |   | 4,810,364 |   |
| Gain      on disposal of discontinued operations, net                                              |   |                                  | -          |   |   |   | (9,715,604 | ) |   |   | - |   |
|                                                                                               |   |                                  |       |   |   |   |   |   |   |   |   |   |
| Loss      from continuing operations                                                               |   |                                  | (8,606,891 | ) |   |   | (5,853,935 | ) |   |   | (4,919,707 | ) |
| Adjustments      to reconcile net (loss) to net cash                                               |   |                                  |       |   |   |   |   |   |   |   |   |   |
| provided      (used) by operating activities:                                                      |   |                                  |       |   |   |   |   |   |   |   |   |   |
| Depreciation,      depletion, and amortization                                                     |   |                                  | 1,238,733  |   |   |   | 585,439 |   |   |   | 242,527 |   |
| Impairment,      dry hole and other disposals of property                                          |   |                                  | 481,930    |   |   |   | 459,243 |   |   |   | 90,165 |   |
| Minority      interest                                                                             |   |                                  | (139,939   | ) |   |   | (27,341 | ) |   |   | - |   |
| Loss      on buyback of minority interest                                                          |   |                                  | 169,374    |   |   |   | - |   |   |   | - |   |
| Stock-based      compensation costs, net of taxes                                                  |   |                                  | 831,752    |   |   |   | 1,262,404 |   |   |   | - |   |
| Warrant      costs from issuance of restricted common stock                                        |   |                                  | 384,352    |   |   |   | 247,313 |   |   |   | - |   |
| Marketable      securities                                                                         |   |                                  | (380,000   | ) |   |   | - |   |   |   | - |   |
| (Gain)      or loss on sale of property                                                            |   |                                  | -          |   |   |   | - |   |   |   | 131,766 |   |
| Property,      mining claims & services paid with common stock                                 |   |                                  | -          |   |   |   | - |   |   |   | 5,666,575 |   |
| Director      stock compensation                                                                   |   |                                  | 112,428    |   |   |   |   |   |   |   |   |   |
| Changes      in operating capital:                                                                 |   |                                  |       |   |   |   |   |   |   |   |   |   |
| (Increase)      decrease in accounts receivable                                                    |   |                                  | 63,757     |   |   |   | 85,419 |   |   |   | (89,862 | ) |
| (Increase)      decrease in prepaids                                                               |   |                                  | 30,500     |   |   |   | - |   |   |   | 53,527 |   |
| (Increase)      decrease in deposits and other assets                                              |   |                                  | (28,939    | ) |   |   | (19,088 | ) |   |   | (14,874 | ) |
| Increase      (decrease) in income taxes payable                                                   |   |                                  | -          |   |   |   | - |   |   |   | - |   |
| Increase      (decrease) in accounts payable, deferred revenue and accrued      expenses           |   |                                  | 3,704,199  |   |   |   | 635,880 |   |   |   | (445,454 | ) |
| Increase      (decrease) in amounts payable to joint venture participants and related      parties |   |                                  | 604        |   |   |   | (82,680 | ) |   |   | 263,380 |   |
| Increase      (decrease) in advances from joint venture                                            |   |                                  |       |   |   |   |   |   |   |   |   |   |
| participants                                                                                       |   |                                  | (1,736,982 | ) |   |   | 90,264 |   |   |   | (1,003,031 | ) |
|                                                                                               |   |                                  |       |   |   |   |   |   |   |   |   |   |
| Net      cash provided by (used in) continuing operations                                          |   |                                  | (3,875,122 | ) |   |   | (2,617,082 | ) |   |   | (24,988 | ) |
| Net      cash provided by (used in) discontinued operations                                        |   |                                  | -          |   |   |   | 543,073 |   |   |   | (4,446,650 | ) |
| Net      Cash Provided (Used) by Operating Activities                                              |   |                                  | (3,875,122 | ) |   |   | (2,074,009 | ) |   |   | (4,471,638 | ) |

|                                                        |   | For      the Years Ended December 31, |        |
|-------------------------------------------------------------|--------|---------------------------------------|-------------|
|                                                        |   | 2007                                  |        |   | 2006 |   |   | 2005 |   |
| CASH      PROVIDED (USED) BY INVESTING ACTIVITIES           |   |                                  |        |   |   |   |   |   |   |
| Proceeds      from sale of property                         |   |                                  | -           |   |   |   | 461,752 |   |   |   | - |   |
| Buy      back of minority interest in GVDC/GVPS             |   |                                  | (5,019,440  | ) |   |   | - |   |   |   | - |   |
| Proceeds      from sale of discontinued operations          |   |                                  | -           |   |   |   | 13,838,625 |   |   |   | - |   |
| Member      capital distributions                           |   |                                  | (170,796    | ) |   |   | - |   |   |   | - |   |
| Capital      expenditures                                   |   |                                  | (5,853,593  | ) |   |   | (5,760,034 | ) |   |   | (6,494,822 | ) |
| (Investment      in) marketable securities                  |   |                                  | (47,056     | ) |   |   | - |   |   |   | - |   |
|                                                        |   |                                  |        |   |   |   |   |   |   |   |   |   |
| Net      cash provided by (used in) continuing operations   |   |                                  | (11,090,885 | ) |   |   | 8,540,343 |   |   |   | (6,494,822 | ) |
| Net      cash provided by (used in) discontinued operations |   |                                  | -           |   |   |   | (225,042 | ) |   |   | (4,256,602 | ) |
|                                                        |   |                                  |        |   |   |   |   |   |   |   |   |   |
| Net      Cash Provided (Used) by Investing Activities       |   |                                  | (11,090,885 | ) |   |   | 8,315,301 |   |   |   | (10,751,424 | ) |
|                                                        |   |                                  |        |   |   |   |   |   |   |   |   |   |
|                                                        |   |                                  |        |   |   |   |   |   |   |   |   |   |

----

| CASH      PROVIDED (USED) BY FINANCING ACTIVITIES                                                   |   |   |       |   |   |   |       |   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                                                |   |   |       |   |   |   |       |   |   |
|      Proceeds      from long-term debt                                     |   |   | -          |   |   |   | 1,017,559  |   |   |   | - |   |
|      Proceeds      from long-term debt – related parties             |   |   | -          |   |   |   | 1,200,000  |   |   |   | 3,666,765 |   |
|      Principal      payments on long-term debt                             |   |   | (1,109,241 | )      |   |   | (4,909,204 | )      |   |   | (311,673 | ) |
|      Net      proceeds from the sale of minority                           |   |   | -          |   |   |   | 5,438,087  |   |   |   | - |   |
|      Net      proceeds from the issuance of warrants                       |   |   | 268,197    |   |   |   | -          |   |   |   | - |   |
|      Net      proceeds from issuance of common stock                       |   |   | 7,876,529  |   |   |   | 2,442,890  |   |   |   | 3,101,938 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      cash provided by (used in) continuing operations                                           |   |   | 7,035,485  |   |   |   | 5,189,332  |   |   |   | 6,457,030 |   |
| Net      cash provided by (used in) discontinued operations                                         |   |   | -          |   |   |   | (709,330   | )      |   |   | 1,830,033 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      Cash Provided (Used) by Financing Activities                                               |   |   | 7,035,485  |   |   |   | 4,480,002  |   |   |   | 8,287,063 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents                                           |   |   | (7,930,522 | )      |   |   | 10,721,294 |   |   |   | (6,935,999 | ) |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      at Beginning of Year                                                                      |   |   | 15,598,215 |   |   |   | 4,876,921  |   |   |   | 11,812,920 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      of End of Year                                                                            |   | $      | 7,667,693  |   |   | $      | 15,598,215 |   |   | $ | 4,876,921 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
|    Interest      paid                                                                |   | $      | 258,829    |   |   | $      | 352,815    |   |   | $ | 377,943 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
|    Income      taxes paid                                                            |   | $      | -          |   |   | $      | -          |   |   | $ | - |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
|         Property      purchased with debt                   |   | $      | 31,948     |   |   | $      | -          |   |   | $ | - |   |
|         Property      & services paid with common stock |   | $      | -          |   |   | $      | 620,716    |   |   | $ | 2,662,075 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
|         Stock      issued in exchange for mining claims     |   | $      | -          |   |   | $      | -          |   |   | $ | 3,004,500 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |

----

----

----

----

----

----

|                                        |        December      31, |        December      31, |   |  December      31,                                              |   |
|---------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                        | 2007                                                        | 2006                                                        |   |     2005                                         |   |
|                                        |                                                        |                                                        |   |                                                                 |   |
| Beginning      asset retirement obligations | $        216,714    | $        92,108     |   | $           0 |   |
|                                        |                                                        |                                                        |   |                                                                 |   |
| Liabilities      assumed in acquisitions    |    2,380(3)                                  |    111,364(2)                                |   | 92,108(1)                                                            |   |
| Accretion      of discount                  |       21,300                  |       13,242                  |   |                                                                 |   |
|                                        |                                                        |                                                        |   |                                                                 |   |
| Ending      asset retirement obligations    | $      240,394                | $      216,714                |   | $      92,108                                                        |   |

| (1)   | The      Company’s portion of the liability for the plugging and abandonment of the      wells acquired from the Temblor Valley, Pleasant Valley and previous      acquisitions. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The      Company’s portion of the liability for the plugging and abandonment of the      wells acquired from the C & L/Crofton & Coffee lease, the Claflin      lease and the SP/Chevron lease. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The      Company’s portion of the liability for the plugging and abandonment of      wells drilled from the Temblor Valley and Pleasant Valley      acquisitions. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Office      furniture and fixturesVehicle,      machinery & equipmentBuilding | 3 -      7 years5 -      10 years15      years |
|-----------------------------------------------------------------------------------|------------------------------------------------|

|                                                                                                                              |             | December      31,                                       | December      31,                                         |   | December      31,                                                                                                                |   |
|-----------------------------------------------------------------------------------------------------------------------------------|------------------|---------------------------------------------------------|-----------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                              |             | 2007                                                    | 2006                                                      |   | 2005                                                                                                                             |   |
|                                                                                                                              |             |                                                    |                                                      |   |                                                                                                                             |   |
| Net      Income                                                                                                                   | As      reported |  $      (  8,606,891)                    |  $  (  913,171)                  |   | $  (9,730,071)                                                                                                         |   |
| Add:      Stock-based compensation expense included in reported net income, net of      tax benefit                               |             |         868,962 |         1,262,404 |   |                      -- |   |
| Deduct:  Stock-based      compensation expense determined under fair value based method for all      awards, net of tax |             |        (868,962)     |        (1,262,404)     |   |               (631,000)                                    |   |
|                                                                                                                              | Pro      forma   | $   (8,606,891)                          | $   (913,171)                              |   |        $(10,361,071)                                                                          |   |
|                                                                                                                              |             |                                                    |                                                      |   |                                                                                                                             |   |
| Earnings      per share                                                                                                           | As      reported | (0.35)                                                  | (0.04)                                                    |   |              (0.43)                                             |   |
|                                                                                                                              | Pro      forma   | (0.35)                                                  | (0.04)                                                    |   |              (0.46)                                             |   |

----

----

|                                                                                                |   |   |       |   |   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                |   | 2007   |       |   | 2006   |   |
| Oil      and gas – California                                                                 |   |   |       |   |   |   |
| Proved      properties, gross                                                                       |   | $      | 3,026,660  |   |   | $      | 2,169,496 |   |
| Accumulated      depletion                                                                          |   |   | (882,753   | )      |   |   | (761,571 | ) |
| Proved      properties, net                                                                         |   |   | 2,143,907  |   |   |   | 1,407,925 |   |
| Unproved      properties                                                                            |   |   | 2,414,843  |   |   |   | 2,792,340 |   |
| Total      oil and gas properties                                                                   |   |   | 4,558,750  |   |   |   | 4,200,265 |   |
|                                                                                                |   |   |       |   |   |   |   |   |
| Rigs                                                                                                |   |   | 7,492,975  |   |   |   | 5,444,646 |   |
|     Accumulated      depreciation                                               |   |   | (761,217   | )      |   |   | (73,053 | ) |
|               Total      Rigs |   |   | 6,731,758  |   |   |   | 5,371,593 |   |
|                                                                                                |   |   |       |   |   |   |   |   |
| Other      property and equipment                                                                   |   |   |       |   |   |   |   |   |
| Land                                                                                                |   |   | 21,281     |   |   |   | 21,281 |   |
| Building                                                                                            |   |   | 45,124     |   |   |   | 45,124 |   |
| Machinery      and Equipment                                                                        |   |   | 4,875,326  |   |   |   | 2,414,824 |   |
| Vehicles                                                                                            |   |   | 803,296    |   |   |   | 407,739 |   |
| Transmission      tower                                                                             |   |   | 51,270     |   |   |   | 51,270 |   |
| Office      furniture and equipment                                                                 |   |   | 149,229    |   |   |   | 159,241 |   |
|                                                                                                |   |   | 5,945,526  |   |   |   | 3,099,479 |   |
| Accumulated      depreciation                                                                       |   |   | (1,003,381 | )      |   |   | (595,294 | ) |
| Total      other property and equipment, net                                                        |   |   | 4,942,145  |   |   |   | 2,504,185 |   |
|                                                                                                |   |   |       |   |   |   |   |   |
| Property      and equipment, net                                                                    |   | $      | 16,232,653 |   |   | $      | 12,076,043 |   |
|                                                                                                |   |   |       |   |   |   |   |   |
|                                                                                                |   |   |       |   |   |   |   |   |

----

|                                                                                                                                                                                                                                        |                                    December      31, |                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                2007 |                  2006 |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| Note      payable to Rabobank dated October 5, 2005, secured by a vehicle, interest      at 6.5%, payable in 60 monthly installments of $599.                                                                                               |                                                                                                                                                                                                                                | $          18,527                            | $          25,119 |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| Note      payable to Jim Burke Ford dated November 18,                                                                                                                                                                                      |                                                                                                                                                                                                                                |                                                                                           |   |
| 2005;      secured by a vehicle; interest at 6.49%; payable                                                                                                                                                                                 |                                                                                                                                                                                                                                |                                                                                           |   |
| in      60 monthly installments of $714.                                                                                                                                                                                               |                                                                                                                                                                                                                                | 22,677                                                                                         | 30,520 |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| Note      payable to Sealaska Corporation dated July 15,                                                                                                                                                                                    |                                                                                                                                                                                                                                |                                                                                           |   |
| 2005;      secured by mining machines and equipment;                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| imputed      interest at 7.5%; payable in 10 yearly                                                                                                                                                                                         |                                                                                                                                                                                                                                |                                                                                           |   |
| installments      of $200,000. Face amount was $2,000,000 before the imputed interest      discount of $627,184 which resulted in a principal amount of      $1,372,816.                                                                    |                                                                                                                                                                                                                                | 1,171,461                                                                                      | 1,275,777 |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| Note      payable to Jim Burke Ford dated November 18,                                                                                                                                                                                      |                                                                                                                                                                                                                                |                                                                                           |   |
| 2005      paid in full during 2007; secured by a vehicle; interest at 6.49%; payable      in 60 monthly installments of $493.                                                                                                               |                                                                                                                                                                                                                                |                                                                                           |   |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                | -                                                                                              | 20,351 |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| Note      payable to Three Way Chevrolet dated April 03, 2006; secured by a vehicle;      interest at 5.90%; payable in 60 monthly installments of    $577.                                                                                 |                                                                                                                                                                                                                                | 20,926                                                                                         | 27,356 |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| Note      payable to Three Way Chevrolet dated February 24, 2006; secured by a      vehicle; interest at 9.70%; payable in 60 monthly installments of      $1,324.                                                                          |                                                                                                                                                                                                                                | 44,018                                                                                         | 56,864 |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| Note      payable to Moss Family Trust dated February 14, 2006; secured by 100,000      shares of Tri Valley corporation unregistered restricted common stock;      interest at 12.00%; payable in 60 monthly installments of      $13,747. |                                                                                                                                                                                                                                | 442,147                                                                                        | 547,108 |
|                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                |                                                                                           |   |
| Note      payable to Moss Family Trust dated March 8, 2006; secured by 40,000 shares      of Tri Valley corporation unregistered restricted common stock; interest      at 12.00%; payable in 60 monthly installments of $5,728             |                                                                                                                                                                                                                                | 184,228                                                                                        | 227,961 |

----

| NOTE      4 – NOTES PAYABLE (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                            |                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |      December      31, |                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2007                                            |                 2006 |   |   |
| Note      payable to F. Lynn Blystone and Patricia L Blystone dated March 21, 2006      paid in full during 2007; secured by 6% overriding royalty interest in the      Temblor Valley Production; interest at 1.00% per month, paid in full April      2007.                                                                                                                                                                                                   |   | -                                               | 150,000                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |                                                                                                 |   |
| Note      payable to Sun Valley Trust dated December 01, 2006 paid in full during      2007; payable in 6 monthly installments of $50,000.    Unsecured                                                                                                                                                                                                                                                                                                         |   | -                                               | 300,000                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |                                                                                                 |   |
| Note      payable to Three Way Chevrolet dated January 22, 2007; secured by a      vehicle; interest at 6.90%; payable in 60 monthly installments of      $622.                                                                                                                                                                                                                                                                                                 |   | 26,504                                          | -                                                                                                    |   |
|  Note      payable to Three Way Chevrolet dated September 11, 2006; secured by a      vehicle; interest at 4.90%; payable in 60 monthly installments of      $927.                                                                                                                                                                                                                                                                                         |   | 38,000                                          | 46,994                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |                                                                                                 |   |
| Note      payable to Three Way Chevrolet dated September 11, 2006; secured by a      vehicle; interest at 6.90%; payable in 60 monthly installments of      $633.                                                                                                                                                                                                                                                                                               |   | 24,999                                          | 30,631                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |                                                                                                 |   |
| Note      payable to Three Way Chevrolet dated October 31, 2006; secured by a      vehicle; interest at 9.70%; payable in 60 monthly installments of      $1,679.43.                                                                                                                                                                                                                                                                                            |   | 62,259                                          | 78,272                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |                                                                                                 |   |
| Note      payable to Gary D, Borgna and Julie R. Borgna, and Equipment 2000 dated      December 30, 2006; secured by Rig Equipment; imputed interest at 8.00%;      payable in 120 monthly installments of $9,100 and a payment of $300,000      paid January 3, 2007.  Face amount was $1,392,000 before the      discount of $342,000 which resulted in a principal amount of $1,050,000.      (also see note 5 – related party transactions) |   | 698,964                                         | 1,050,000                                                                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2,757,710                                       | 3,866,953                                                                                            |   |
| Less      current portion                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 402,003                                         | 1,120,105                                                                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |                                                                                                 |   |
| Long-term      portion of notes payable                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $    2,355,707              | $    2,746,848                                                                   |   |

| 2008      |      $               402,003 |
|-----------|----------------------------------------------------------------------------------------------------------------------------------|
| 2009      |                     440,720  |
| 2010      | 481,970                                                                                                                          |
| 2011      | 304,293                                                                                                                          |
| 2012-2016 |                   1,128,724            |
|      |                                                                                                                             |
|      | $         2,757,710                                                                 |

----

| Year |   | Expected      Life |   | Expected      Dividends |   | Expected      Volatility |   | Risk-Free      Interest Rates |
|------|--------|--------------------|--------|-------------------------|--------|--------------------------|--------|-------------------------------|
| 2007 |   | 4.28               |   | None                    |   | 45%                      |   | 3.7%                          |

|                          |   |                      |   |                                      |   |                            |   |                |                                         |
|-------------------------------|--------|---------------------------|--------|-------------------------------------------|--------|---------------------------------|--------|---------------------|----------------------------------------------|
|                          |   | Number      Outstanding   |   | Number      Outstanding & exercisable |   | Weighted-Average                |   | Weighted-Average    | Intrinsic      Value(1)      at December 31, |
| Range      of Exercise Prices |   | at      December 31, 2007 |   | at      December 31, 2007                 |   | Remaining      Contractual Life |   | Exercise      Price | 2007(in thousands)                           |
|                          |   |                      |   |                                      |   |                            |   |                |                                         |
| $.50      - $10.00            |   | 2,967,350                 |   | 2,417,850                                 |   | 3.8      years                  |   | $2.64               | $11,509                                      |
|                          |   |                      |   |                                      |   |                            |   |                |                                         |

----

|                          |   |                      |   |                                      |   |                            |   |                |                                         |
|-------------------------------|--------|---------------------------|--------|-------------------------------------------|--------|---------------------------------|--------|---------------------|----------------------------------------------|
|                          |   | Number      Outstanding   |   | Number      Outstanding & exercisable |   | Weighted-Average                |   | Weighted-Average    | Intrinsic      Value(1)      at December 31, |
| Range      of Exercise Prices |   | at      December 31, 2006 |   | at      December 31, 2006                 |   | Remaining      Contractual Life |   | Exercise      Price | 2006(in thousands)                           |
|                          |   |                      |   |                                      |   |                            |   |                |                                         |
| $.50      - $10.00            |   | 2,914,850                 |   | 2,674,850                                 |   | 3.6      years                  |   | $2.26               | $19,340                                      |
|                          |   |                      |   |                                      |   |                            |   |                |                                         |

|                          |   |                      |   |                                      |   |                            |   |                |                                         |
|-------------------------------|--------|---------------------------|--------|-------------------------------------------|--------|---------------------------------|--------|---------------------|----------------------------------------------|
|                          |   | Number      Outstanding   |   | Number      Outstanding & exercisable |   | Weighted-Average                |   | Weighted-Average    | Intrinsic      Value(2)      at December 31, |
| Range      of Exercise Prices |   | at      December 31, 2005 |   | at      December 31, 2005                 |   | Remaining      Contractual Life |   | Exercise      Price | 2005(in thousands)                           |
|                          |   |                      |   |                                      |   |                            |   |                |                                         |
| $.50      - $10.00            |   | 2,757,600                 |   | 2,647,600                                 |   | 4.2      years                  |   | $1.70               | $16,097                                      |
|                          |   |                      |   |                                      |   |                            |   |                |                                         |

----

|                                  | 2007                                                              | 2006   |                                                        | 2005                                                                                                    |   |
|---------------------------------------|-------------------------------------------------------------------|--------|-------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------|
|                                  |                                                              |   | Weighted-                                                   |                                                                                                    |   | Weighted- |   |   |   | Weighted- |   |   |
|                                  |                                                              |   | Average                                                     |                                                                                                    |   | Average |   |   |   | Average |   |   |
|                                  |                                                              |   | Exercise                                                    |                                                                                                    |   | Exercise |   |   |   | Exercise |   |   |
|                                  | Shares                                                            |   | Price                                                       | Shares                                                                                                  |   | Price |   | Shares |   | Price |   |   |
| Fixed Options                         |                                                              |   |                                                        |                                                                                                    |   |   |   |   |   |   |   |   |
| Outstanding      at beginning of year |  2,914,850                                                   |   | $         2.67 |  2,757,600                                                                                         |   | $         2.03 |   |  2,553,600 |   | $         1.28 |   |   |
| Granted                               | 700,000                                                           |   | $         7.41 | 445,000                                                                                                 |   | $         6.19 |   | 271,000 |   | $         5.82 |   |   |
| Exercised                             |       (440,000)                     |   | $         1.99 |       (287,750)                                                           |   | $         2.03 |   |       (67,000) |   | $         1.94 |   |   |
| Cancelled                             | (207,500)                                                         |   | $         8.26 |                  - |   |            - |   |                  - |   |             - |   |   |
|                                  |                                                              |   |                                                        |                                                                                                    |   |   |   |   |   |   |   |   |
| Outstanding      at end of year       | 2,967,350                                                         |   | $         3.50 | 2,914,850                                                                                               |   | $         2.67 |   | 2,757,600 |   | $         2.03 |   |   |
|                                  |                                                              |   |                                                        |                                                                                                    |   |   |   |   |   |   |   |   |
| Options      exercisable at year-end  | 2,417,850                                                         |   | $         2.64 | 2,674,850                                                                                               |   | $         2.26 |   | 2,647,600 |   | $         1.70 |   |   |
|                                  |                                                              |   |                                                        |                                                                                                    |   |   |   |   |   |   |   |   |
| Weighted-average      fair value of   |                                                              |   |                                                        |
| options      granted during the year  | $          4.00 |   |                                                        | $          4.78                                       |   |   |   | $          3.32 |   |   |   |   |
|                                  |                                                              |   |                                                        |                                                                                                    |   |   |   |   |   |   |   |   |
| Available      for issuance           | 1,831,500                                                         |   |                                                        | 824,000                                                                                                 |   |   |   |  119,000 |   |   |   |   |

|                                |                  |   |                                                                          |
|-------------------------------------|-----------------------|--------|-------------------------------------------------------------------------------|
|                                | Number      of Shares |   | Weighted-Average      Grant-Date Fair Value                                   |
| Nonvested      at December 31, 2006 | 245,000               |   | $     6.95                                           |
|                                |                  |   |                                                                          |
| Granted                             | 700,000               |   | $     7.41                                           |
| Vested                              |   (395,500) |   | $     7.31                                           |
|                                |                  |   |                                                                          |
| Nonvested      at December 31, 2007 | 549,500               |   |         $    7.28 |

----

|                                                                                                                                                                   |                                                                                              |   | December      31,                                                                     |   |                                                                                  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                   | 2007                                                                                              |   | 2006                                                                                  |   | 2005                                                                                  |   |
|                                                                                                                                                                   |                                                                                              |   |                                                                                  |   |                                                                                  |   |
| Drilling      and development revenue                                                                                                                                  | $    6,131,613                                                                |   | $   2,497,256                                                          |   | $      11,422,234                                                                     |   |
|                                                                                                                                                                   |                                                                                              |   |                                                                                  |   |                                                                                  |   |
| Drilling      and development costs                                                                                                                                    | $    5,010,799                                                                |   | $   1,799,792                                                          |   | $   9,267,621                                                          |   |
|                                                                                                                                                                   |                                                                                              |   |                                                                                  |   |                                                                                  |   |
|                                                                                                                                                                   |                                                                                              |   |                                                                                  |   |                                                                                  |   |
|                                                                                                                                                                   |                                                                                              |   |                                                                                  |   |                                                                                  |   |
|                                                                                                                                                                   |
| Oil      and gas income from the Tri-Valley Oil & Gas Exploration Programs      1971-1 for fiscal year ended December 31, 2007, 2006 and 2005 are as      follows: |
|                                                                                                                                                                   |
|                                                                                                                                                                   |                                                                                              |   | December      31,                                                                     |   |                                                                                  |   |   |
|                                                                                                                                                                   |      2007                                                                |   | 2006                                                                                  |   | 2005                                                                                  |   |   |
|                                                                                                                                                                   |                                                                                              |   |                                                                                  |   |                                                                                  |   |   |
| Partnership      income,  net of expenses                                                                                                                    | $               30,000 |   | $             45,000 |   | $             30,000 |   |   |

| Year |   | Full      Year Basic Earnings (Loss) Per Share |   | Weighted-Average      Shares Outstanding |   | Weighted-Average      Potentially Dilutive Shares Outstanding |   |
|------|--------|------------------------------------------------|--------|------------------------------------------|--------|---------------------------------------------------------------|--------|
| 2007 |   | $    (0.35)                |   | 24,723,766                               |   | 28,061,401                                                    |
| 2006 |   | $    (0.04)                |   | 23,374,205                               |   | 26,377,537                                                    |
| 2005 |   | $    (0.43)                |   | 22,426,580                               |   | 25,030,468                                                    |

----

|                                               | December      31,                                                                                                                | December      31,                                                                                                                |   | December      31,                                                                                                                      |   |
|----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                               | 2007                                                                                                                             | 2006                                                                                                                             |   | 2005                                                                                                                                   |   |
|                                               |                                                                                                                             |                                                                                                                             |   |                                                                                                                                   |   |
|   Net      operating loss carryforwards  | $     9,219,236                                                                                         | $     4,867,050                                                                                         |   | $      5,229,460                                                                                         |   |
|   Statutory      depletion carryforwards |             540,330                                                  |             508,050                                                  |   |             455,070                                                        |   |
|                                               |                                                                                                                             |                                                                                                                             |   |                                                                                                                                   |   |
|                                               |          9,759,566                                                                  |          5,375,119                                                                  |   |        5,684,530                                                                                    |   |
| Less:      deferred tax asset valuation allowance  |            (9,759,566)                                                    |            (5,375,119)                                                    |   |      (5,684,530)                                                                                              |   |
|                                               |                                                                                                                             |                                                                                                                             |   |                                                                                                                                   |   |
| Net      deferred tax assets                       | $                     - | $                     - |   | $                      - |   |

|                                       | December      31, | December      31, | December      31, |
|--------------------------------------------|-------------------|-------------------|-------------------|
|                                       | 2007              | 2006              | 2005              |
| Current:                                   |              |              |              |
|   Federal                        | $0                | $0                | $0                |
|   State                          | 0                 | 0                 | 0                 |
|                                       | $0                | $0                | $0                |
|                                       |              |              |              |   |
| Deferred:  Federal               | $0                | $0                | $0                |
|   State                          | 0                 | 0                 | 0                 |
|                                       | $0                | $0                | $0                |
|                                       |              |              |              |   |
| Total      income tax benefit (provision): |              |              |              |   |
|                                       | December      31, | December      31, | December      31, |
|                                       | 2007              | 2006              | 2005              |
|                                       |              |              |              |
|   Continuing      operations     | $0                | $0                | $0                |
|   Discontinued      operations   | 0                 | 0                 | 0                 |
|                                       | $0                | $0                | $0                |
|                                       |              |              |              |   |

----

| The      Company’s operations are classified into four principal industry      segments: |
|------------------------------------------------------------------------------------------------|
|                                                                                           |   |
| -                                                                                              | Oil and gas operations      include our share of revenues from oil and gas wells on which TVOG serves      as operator, royalty income and production revenue from other partnerships      in which we have operating or non-operating interests.  It also      includes revenues for consulting services for oil and gas related      activities. |
|                                                                                           |   |
| -                                                                                              | Rig operations began in      2006, when the Company acquired drilling rigs and began operating them      through subsidiaries GVPS and GVDC.  Rig operations include      income from rental of oil field equipment. |
|                                                                                           |   |
| -                                                                                              | Minerals include the      Company’s mining and mineral prospects and operations, and expenses      associated with those operations.  In 2006, the Company recorded      minerals revenue from consulting services performed for the mining and      minerals industry, which are included on the operating statement as other      income. |
|                                                                                           |   |
| -                                                                                              | Drilling and      development includes revenues received from oil and gas drilling      and development operations performed for joint venture partners, including      the Opus-I drilling partnership. |
|                                                                                           |   |

----

|                                                                                                                                                                                                                                                                                                                 | Oil      and Gas                                                                                                           | Rig                                                                                                                                                        |                                                                                                                 | Drilling      and                                                                                                                |                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                 | Production                                                                                                                 | Operations                                                                                                                                                 | Minerals                                                                                                             | Development                                                                                                                      | Total                                                                                                                |
| Year ended December 31,2007                                                                                                                                                                                                                                                                                          |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Revenues      from external customers                                                                                                                                                                                                                                                                                | $      761,279                                                                          |      $  2,726,692                                                                                                       | $                  -  | $   6,131,613                                                                                                | $   9,619,584                                                                                    |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Interest      revenue                                                                                                                                                                                                                                                                                                | $       281,502                                                                         | $                  -                                        | $          1,284                                              | $                  -              | $    9,932,370                                                                                   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Interest      expense                                                                                                                                                                                                                                                                                                | $      101,322                                                                          | $        71,859                                                                                               | $        85,644                                                         | $                  -              | $      258,829                                                                    |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Operating      income (loss)                                                                                                                                                                                                                                                                                         | $      131,857                                                                          | $      585,137                                                                                                          | $    (618,130)                                                                                   | $   1,120,813                                                                                                | $   1,219,677                                                                                    |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Expenditures      for segment assets                                                                                                                                                                                                                                                                                 | $   2,280,187                                                                                          | $   3,471,352                                                                                                                          | $                  -  | $                  -              | $   5,751,539                                                                                    |
| Minority      interest                                                                                                                                                                                                                                                                                               | -                                                                                                                          |                     $   (139,939)  | -                                                                                                                    | -                                                                                                                                | $    (139,939)                                                                                   |
| Depreciation,      depletion, and amortization                                                                                                                                                                                                                                                                       | $      229,354                                                                          | $      766,905                                                                                                          | $      242,473                                                                    | $                  -              | $         1,238,732                                                                                   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Total      assets                                                                                                                                                                                                                                                                                                    | $ 23,033,171                                                                                                     | $   (139,739)                                                                                                                          | $   2,361,463                                                                                    | $                  -              | $ 25,254,895                                                                                               |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Estimated      income tax benefit (expense)                                                                                                                                                                                                                                                                          | $                        -  | $                  -                                        | $                  -  | $                  -              | $                  -  |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Net      income (loss)                                                                                                                                                                                                                                                                                               | $  (7,011,433)                                                                                                   | $  (2,061,340)                                                                                                                                   | $     (654,932)                                                                             | $        1,120,814                                                                                                     | $ (8,606,891)                                                                                                   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Year ended December 31,2006                                                                                                                                                                                                                                                                                          |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Revenues      from external customers                                                                                                                                                                                                                                                                                | $         1,154,721                                                                                    |      $  1,033,539                                                                                                       | $      178,500                                                                    | $    2,497,256                                                                                          | $   4,864,016                                                                                    |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Interest      revenue                                                                                                                                                                                                                                                                                                | $        72,707                                                               | $                  -                                        | $                  -  | $                  -              | $        72,707                                                         |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Interest      expense                                                                                                                                                                                                                                                                                                | $        26,834                                                               | $          2,373                                                                                    | $      267,465                                                                    | $                  -              | $      396,672                                                                    |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Operating      income (loss)                                                                                                                                                                                                                                                                                         | $      830,475                                                                          | $      306,719                                                                                                          | $    (465,153)                                                                                   | $      507,465                                                                                | $   1,179,506                                                                                    |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Expenditures      for segment assets                                                                                                                                                                                                                                                                                 | $   1,146,146                                                                                          | $   5,444,646                                                                                                                          | $        15,000                                                         | $                  -              | $   6,605,792                                                                                    |
| Minority      interest                                                                                                                                                                                                                                                                                               | -                                                                                                                          | $      (27,341)                                                                                                              | -                                                                                                                    | -                                                                                                                                | $      (27,341)                                                                        |
| Depreciation,      depletion, and amortization                                                                                                                                                                                                                                                                       | $      159,289                                                                          | $        81,530                                                                                               | $      344,620                                                                    | $                  -              | $      585,439                                                                    |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Total      assets                                                                                                                                                                                                                                                                                                    | $ 18,517,488                                                                                                     | $   7,853,046                                                                                                                          | $   2,283,591                                                                                    | $                  -              | $ 28,654,125                                                                                               |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Estimated      income tax benefit (expense)                                                                                                                                                                                                                                                                          | $                  -        | $                  -                                        | $                  -  | $                  -              | $                  -  |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Net      income (loss)                                                                                                                                                                                                                                                                                               | $  (4,638,280)                                                                                                   | $       (24,002)                                                                                                        | $  3,051,646*                                                                                              | $      697,465                                                                                | $     (913,171)                                                                             |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| *  In      the fourth quarter we sold our interest in Tri-Western Resources and an      associated industrial site for a net gain of $9,715,604.  See      note 12 for a pro forma schedule. NOTE      9 - FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS      (Continued)   |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                 | Oil      and Gas                                                                                                           |                                                                                                                                                       | Drilling      and                                                                                                    |                                                                                                                             |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 | Production                                                                                                                 | Minerals                                                                                                                                                   | Development                                                                                                          | Total                                                                                                                            |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Year ended December 31,2005                                                                                                                                                                                                                                                                                          |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Revenues      from external customers                                                                                                                                                                                                                                                                                | $      932,042                                                                          | $             200                                                                    | $ 11,422,234                                                                                               | $   12,354,476                                                                                                    |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Interest      revenue                                                                                                                                                                                                                                                                                                | $      118,609                                                                          | $          2,295                                                                                    | $                  -  | $        120,904                                                                         |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Interest      expense                                                                                                                                                                                                                                                                                                | $          2,115                                                    | $      375,829                                                                                                          | $                  -  | $        377,944                                                                         |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Operating      income (loss)                                                                                                                                                                                                                                                                                         | $ (2,248,486)                                                                                                         | $ (3,610,142)                                                                                                                                         | $   2,154,613                                                                                    |      (3,704,015)                                                                                        |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Expenditures      for segment assets                                                                                                                                                                                                                                                                                 | $   1,260,884                                                                                          | $   9,490,540                                                                                                                          | $                  -  | $    10,751,424                                                                                              |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Depreciation,      depletion, and amortization                                                                                                                                                                                                                                                                       | $        58,319                                                               | $      442,134                                                                                                          | $                  -  | $        500,453                                                                         |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Total      assets                                                                                                                                                                                                                                                                                                    | $   8,427,037                                                                                          | $   9,614,726                                                                                                                          | $   1,696,967                                                                                    | $  19,738,730                                                                                                          |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Estimated      income tax benefit(expense)                                                                                                                                                                                                                                                                           | $                  -        | $                  -                                        | $                  -  |   $                   - |                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |                                                                                                                       |                                                                                                                                                       |                                                                                                                 |                                                                                                                             |                                                                                                                 |
| Net      income (loss)                                                                                                                                                                                                                                                                                               | $  (5,615,595)                                                                                                   | $  (6,269,089)                                                                                                                                   | $     2,154,613                                                                             | $  (9,730,071)                                                                                                         |                                                                                                                 |

| -   | During      the year various directors and employees of the Company exercised stock      options previously granted.  The new shares issued pursuant to      the stock option plan amounted to 377,791  shares. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | The      Company issued 5,000 shares to one employee in accordance with his      employment contract. |
|---|-------------------------------------------------------------------------------------------------------|

| - | The      Company issued 2,000 shares each to six board members for services      rendered. |
|---|--------------------------------------------------------------------------------------------|

| -   | The      remaining 1,135,738 shares were issued in private placements at prices of      $6.00 to $9.00 per share for a total consideration of $8,958,430, or a      weighted average price of $7.72. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | During      the year the common stock issuance cost amounted to approximately      $1,081,900. |
|---------------|------------------------------------------------------------------------------------------------|

| -   | During      the year various directors and employees of the Company exercised stock      options previously granted.  The new shares issued pursuant to      the stock option plan amounted to 237,593 shares.  Cash      consideration received totaled to$318,375. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The      Company pledged 140,000 common shares as security of two notes      payable. |
|---------------|---------------------------------------------------------------------------------------|

| - | The      Company issued 5,000 shares to one employee in accordance with his      employment contract. |
|---|-------------------------------------------------------------------------------------------------------|

| -   | The      Company issued 16,261 shares as a deposit to Sun Valley      Trust.  The stock was valued at $6.15 per share.  The      deposit was subsequently applied to the purchase price of three leases at      the date of closing. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The      Company issued 5,280 shares to a consultant for $43,042 in services at an      agreed price of $8.15 per share. |
|---------------|--------------------------------------------------------------------------------------------------------------------------|

| -   | The      Company issued 54,870 shares as partial payment to purchase a drilling rig      for Great Valley Drilling Company, LLC valued at $9.49 per share for a      consideration of $520,716. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The      Company issued 35,000 shares to a director who exercised warrants at      $10.00 per share, for total cash consideration of  $350,000. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The      remaining 281,475 shares were issued in private placements at prices of      $7.00 to $8.60 per share for a total consideration of $2,054,719, or a      weighted average price of $7.30. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | During      the year the common stock issuance cost amounted to approximately      $310,740. |
|---------------|----------------------------------------------------------------------------------------------|

convertible instruments using the Black-Scholes valuation method, using the sameassumptions used for valuing employee options for purposes of SFAS No. 123R,except that the expected life of the warrant is used.  Under these guidelines,the Company allocates the value of the proceeds received. The price allocatedfor the warrants is calculated by subtracting the current market price of thestock from the total proceeds of the sale of the restricted stock with thewarrant attached. The allocated fair value is recorded as capital paid in –warrants.  This allocated fair value of the proceeds from the sale ofwarrants is subtracted from the value of the warrants using the Black-Scholesvaluation method to calculate the stock issuance expense. 

----

| Total      Opus Contributions | $        64,763,796            |
|-------------------------------|------------------------------------------------------------------------|
| Total      Opus Expenditures  | $        61,864,663            |
| Remaining      advances       | $          2,899,133 |

| Interest      credited to joint account | $             686,802 |
|-----------------------------------------|----------------------------------------------------------------------------------------|

|                                    | Payments      Due By Period                       |                                              |
|-----------------------------------------|---------------------------------------------------|---------------------------------------------------|
|                                    | Less      than 1year                              | 1-3      years                                    | 3-5      years | After      5years | Total |
| Long      term debt(1)                  | $402,003                                          |      $1,324,693          |  $  786,267 |  $244,747 |  $      2,757,710 |
| Operating      lease commitments (2)    |        185,640 |        371,280 | 30,940 |  - |        587,860 |
| Total      contractual cash obligations |  $      587,643                              |     1,695,973                 |  $  817,207 | $244,747 | $      3,345,570 |
|                                    |                                              |                                              |   |   |   |

| (1)   | Represents      cash obligations for principal payments and interest payments on various      loans that are all secured by the asset financed. For further detail, see      Note 4 to the Consolidated FinancialStatements. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Lease      agreement of corporate headquarters in Bakersfield, California, lease      terms are until March 2011 at a monthly payment of  $15,470. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                   | For      the year ended December 31, 2007                                                                                     |
|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
|                                                   | As                                                                                                                            |   | Pro      Forma |   |   |
|                                                   | Presented                                                                                                                     |   | Adjustment |   | Pro      Forma |
| Total      Revenue                                     | $   11,016,107                                                                                                 |   |                    - |   | $   11,016,107 |
| Total      Costs and Expenses                          | $   19,758,682                                                                                                 |   |                    - |   | $   19,742,749 |
| Net      loss from continued operations                | $  (8,742,575)                                                                                                      |   |                    - |   | $  (8,742,575) |
| Loss      from discontinued operations                 | $                    -    |   |                   - |   | $                    - |
| Gain      from sell of discontinued operations         | $                    -    |   |                     - |   | $                    - |
| Income      (loss) before minority interest            | $  (8,742,575)                                                                                                      |   |   |   | $  (8,742,575) |
| Minority      interestNet      loss                    | (139,939)(8,606,891)                                                                                                          |   |  -- |   | (133,939)(8,606,891) |
|  Continued      operations loss per common share  |  $          (0.35)                                                     |   |                     - |   |  $          (0.35) |
| Discontinued      operations earnings per common share | $                   -          |   | - |   | $                   - |
| Basic      loss per common share                       | $          (0.35)                                                           |   | - |   | $          (0.35) |
| Weighted      average number of shares outstanding     | 24,723,766                                                                                                                    |   |                     - |   | 24,723,766 |
| Potentially      dilutive shares outstanding           | 28,061,401                                                                                                                    |   |                     - |   | 28,061,401 |
|                                                   |                                                                                                                          |   |   |   |   |
|                                                   | For      the year ended December 31, 2006                                                                                     |
|                                                   | As                                                                                                                            |   | Pro      Forma |   |   |
|                                                   | Presented                                                                                                                     |   | Adjustment |   | Pro      Forma |
| Total      Revenue                                     | $    4,936,723                                                                                            |   | $                    - |   | $    4,936,723 |
| Total      Costs and Expenses                          | $  10,817,999                                                                                                       |   | $                    - |   | $  10,817,999 |
| Net      loss from continued operations                | $      (5,881,276)                                                                                                            |   | $                    - |   | $      (5,881,276) |
| Loss      from discontinued operations                 | $      (4,774,840)                                                                                                            |   | $  (4,774,840) |   | $                  - |
| Gain      from sell of discontinued operations         | $    9,715,604                                                                                            |   | $     9,715,604 |   | $                  - |
| Income      (loss) before minority interest            | $    (940,512)                                                                                            |   | $     4,940,764 |   | $      (5,881,276) |
| Minority      interestNet      loss                    |                   (27,341)(913,171) |   |  -$     4,940,764 |   |  -$      (5,881,276) |
|  Continued      operations loss per common share  |  $          (0.25)                                                     |   |  $                    - |   |  $          (0.25) |
| Discontinued      operations earnings per common share | $            0.21                                                 |   | $              0.21 |   | $            0.00 |
| Basic      loss per common share                       | $          (0.04)                                                           |   | $          (      0.21) |   | $          (0.25) |
| Weighted      average number of shares outstanding     | 23,374,205                                                                                                                    |   |                     - |   | 23,374,205 |
| Potentially      dilutive shares outstanding           | 26,377,537                                                                                                                    |   |                     - |   | 26,377,537 |
|                                                   | $    4,936,723                                                                                            |   | $                    - |   | $    4,936,723 |
|                                                   |                                                                                                                          |   |   |   |   |
|                                                   | For      the year ended December 31, 2005                                                                                     |
|                                                   | As                                                                                                                            |   | Pro      Forma |   |   |
|                                                   | Presented                                                                                                                     |   | Adjustment |   | Pro      Forma |
| Total      Revenue                                     | $  12,526,110                                                                                                       |   | $                   - |   | $    12,526,110 |
| Total      Costs and Expenses                          | $  17,445,817                                                                                                       |   | $                   - |   | $    17,445,817 |
| Net      loss from continued operations                | $  (4,919,707)                                                                                                      |   | $                   - |   | $   (4,919,707) |
| Loss      from discontinued operations                 | $  (4,810,364)                                                                                                      |   | $  (4,810,364) |   | $                    - |
| Net      loss                                          | $  (9,730,071)                                                                                                      |   | $  (4,810,364) |   | $   (4,919,707) |
| Continued      operations loss per common share        | $           (0.43)                                                     |   | $              0.21 |   | $           (0.22) |
| Basic      loss per common share                       | $           (0.43)                                                     |   | $              0.21 |   | $           (0.22) |
| Weighted      average number of shares outstanding     | 22,426,580                                                                                                                    |   |                     - |   | 22,426,580 |
| Potentially      dilutive shares outstanding           | 25,030,468                                                                                                                    |   |                     - |   | 25,030,468 |

|                      | December      31, 2007 |
|---------------------------|------------------------|
|                      |                   |
| Net      cost of equities | $      427,055         |
| Unrealized      Losses    | (10,000)               |
| Unrealized      Gains     | 22,945                 |
| Fair      Market Value    | $      440,000         |
|                      |                   |

----

|                                                      | December      31,                                                     |   | December      31,                                                     | December      31,                                                     |
|-----------------------------------------------------------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
|                                                      | 2007                                                                  |   | 2006                                                                  | 2005                                                                  |
|                                                      |                                                                  |   |                                                                  |                                                                  |
| Aggregate      capitalized costs:                         |                                                                  |   |                                                                  |                                                                  |
| Proved      properties                                    | $       3,026,660                  |   | $       2,169,496                  | $        1,795,653            |
| Unproved      properties                                  | 2,414,843                                                             |   | 2,792,340                                                             | 3,009,564                                                             |
| Accumulated      depletion, depreciation and amortization |           (882,753) |   |           (761,571) |           (649,550) |
|                                                      |                                                                  |   |                                                                  |                                                                  |
| Net      capitalized assets                               | $       4,558,750                  |   | $       4,200,265                  | $       4,155,667                  |

|                                                                                               | December      31,                                                                                                                                  |   | December      31,                                                                                                                | December      31,                                                                                                          |
|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
|                                                                                               | 2007                                                                                                                                               |   | 2006                                                                                                                             | 2005                                                                                                                       |
|                                                                                               |                                                                                                                                               |   |                                                                                                                             |                                                                                                                       |
| Acquisition      of producing  properties and productive and non-productive      acreage | $                       -       |   | $         400,000                                                                   |  $   1,736,625                                                                                         |
|                                                                                               |                                                                                                                                               |   |                                                                                                                             |                                                                                                                       |
| Exploration      costs and development activities                                                  |    $                     - |   | $                     - |   $                  - |

|                                              | December      31,                                                                                 |   | December      31,                                                          | December      31,                                        |
|---------------------------------------------------|---------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|----------------------------------------------------------|
|                                              | 2007                                                                                              |   | 2006                                                                       | 2005                                                     |
|                                              |                                                                                              |   |                                                                       |                                                     |
| Sales      to unaffiliated parties                | $          791,279                              |   | $          1,074,606     | $        932,042 |
| Production      costs                             | (430,068)                                                                                         |   | (388,700)                                                                  | (93,429)                                                 |
| Depletion,      depreciation and amortization     | (229,354)                                                                                         |   | (159,289)                                                                  | (28,226)                                                 |
|                                              |            131,857     |   | 526,617                                                                    | 810,387                                                  |
| Income      tax expense                           | -                                                                                                 |   | -                                                                          | -                                                        |
|                                              |                                                                                              |   |                                                                       |                                                     |
| Results      of operations from activities before |                                                                                              |   |                                                                       |                                                     |
| extraordinary      items (excluding corporate     |                                                                                              |   |                                                                       |                                                     |
| Overhead      and interest costs)                 | $           131,857                        |   | $           526,617 | $        810,387 |

|                                            | December 31, 2007 | December 31, 2006 | December 31, 2005   |          |
|-------------------------------------------------|-------------------|-------------------|---------------------|---------------|
|                                            | Oil               | Gas               | Oil                 | Gas           | Oil | Gas |
|                                            | (BBL)             | (MCF)             | (BBL)               | (MCF)         | (BBL) | (MCF) |
|                                            |              |              |                |          |   |   |
| Proved      developed and undeveloped reserves: |              |              |                |          |   |   |
| Beginning      of year                          | 275,452           | 787,017           | 218,030        | 779,598  | 162  | 742,401  |
| Revisions      (a), (b), (e), (f)               | (44,448)          | 20,299            | (65,673)            | 88,336   | (144) | 119,453  |
| Purchases      (c), (g), (h)                    | 148,049           | -                 | 125,413        | -        | 218,029  | -  |
| Improved      recovery (d),(i),(j)              | -                 | 29,741            | 4,282          | 5,260    | -  | 46,346  |
| Production                                      | (7,006)           | (45,928)          |   (6,600) | (86,177)      |        (17) | (128,602) |
|                                            |              |              |                |          |   |   |
| End      of year                                | 372,047           | 791,128           | 275,452        | 787,017  | 218,030  | 779,598  |
|                                            |              |              |                |          |   |   |
| Proved      developed reserves:                 |              |              |                |          |   |   |
| Beginning      of year                          | 275,452           | 787,017           | 154,673        | 779,598  |        162  | 742,401  |
|                                            |              |              |                |          |   |   |
| End      of year                                | 372,048           | 791,128           | 275,452        | 787,017  | 154,673  | 779,598  |
|                                            |              |              |                |          |   |   |   |

----

| (1) | Estimates      are made of quantities of proved reserves and the future periods during      which they are expected to be produced based on year-end economic      conditions. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      estimated future production of proved reserves is priced on the basis of      year-end prices. |
|-----|---------------------------------------------------------------------------------------------------------|

| (3) | The      resulting future gross revenue streams are reduced by estimated future      costs to develop and to produce proved reserves, based on year end cost      estimates. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Supplemental      Information (Unaudited) |
|--------|-------------------------------------------|

| (4) | The      resulting future net revenue streams are reduced to present value amounts      by applying a ten percent discount. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

|                                                         | December      31,                         |   | December      31,                                                                 |   | December      31,                                                     |
|--------------------------------------------------------------|-------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
|                                                         | 2007                                      |   | 2006                                                                              |   | 2005                                                                  |
|                                                         |                                      |   |                                                                              |   |                                                                  |
| Future      cash in flows                                    | $     36,745,611 |   | $      19,415,065                                   |   | $    19,154,814                                   |
| Future      production and development costs                 | (12,714,080)                              |   |          (5,858,187)                 |   |        (4,292,152)                 |
| Future      income tax expenses                              | (1,568,917)                               |   |             (722,868) |   |           (659,464) |
| Future      net cash flows                                   | 22,462,614                                |   |          12,834,010                  |   |        14,203,198                  |
| 10%      annual discount for estimated timing of cash flows  | 10,138,224                                |   |            6,712,715       |   |          7,147,126       |
| Standardized      measure of discounted future net cash flow | $    12,324,390       |   | $        6,121,295                        |   | $       7,056,072                  |

----

|                                                             | December      31,       |   | December      31,                                                                    |   | December      31,                                                                                                                           |
|------------------------------------------------------------------|-------------------------|--------|--------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                                                             | 2007                    |   | 2006                                                                                 |   | 2005                                                                                                                                        |
|                                                             |                    |   |                                                                                 |   |                                                                                                                                        |
| Standardized      measure - beginning of period                  | $      6,121,295        |   |  $     7,056,072                                       |   |  $     1,958,238                                                                                              |
|                                                             |                    |   |                                                                                 |   |                                                                                                                                        |
| Sales      of oil and gas produced, net of production costs      | (690,155)               |   |           (640,515)                |   |           (807,930)                                                                       |
| Revisions      of estimates of reserves provided in prior years: |                    |   |                                                                                 |   |                                                                                                                                        |
|   Net      changes in prices                           | 8,801,793               |   |            (2,215,972)        |   |            1,412,965                                                                 |
|   Revisions      of previous quantity estimates        | 1,641,446               |   |           (2,512,220)              |   |           1,630,965                                                                       |
| Extensions      and discoveries                                  | 4,718,914               |   |            -                  |   |         11,345,272                                                                                  |
|   Property      acquisition                            | -                       |   | 2,370,080                                                                            |   |                        - |
| Accretion      of discount                                       | (15,970,845)            |   |            434,411            |   |            (6,204,768)                                                               |
| Changes      in production and development costs.                | 6,855,893               |   |           1,566,035                |   |           (1,580,186)                                                                     |
| Net      change in income taxes                                  | 846,049                 |   |              63,404 |   |              (698,484)                                                     |
|                                                             |                    |   |                                                                                 |   |                                                                                                                                        |
| Net      increase (decrease)                                     | 6,203,095               |   |             (934,777)    |   |             5,097,834                                                           |
|                                                             |                    |   |                                                                                 |   |                                                                                                                                        |
| Standardized      measure - end of period                        | $  12,324,390 |   | $     6,121,295                                             |   | $     7,056,072                                                                                                    |

----

|                                                                                                                     | 2007                                                     |
|--------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|
|                                                                                                                     | First                                                    |   | Second |   | Third |   | Fourth |
|                                                                                                                     | Quarter                                                  |   | Quarter |   | Quarter |   | Quarter |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Operating      Revenues                                                                                                  | $    1,516,300                       |   |       $1,299,709 |   | $   3,912,591 |   | $       4,004,721 |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Net      Income (Loss)                                                                                                   | $      (2,402,019)                                       |   | $      (2,810,243) |   | $      (1,038,643) |   | $     (2,355,986) |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Net      Income per Common Share - Basic                                                                                 | $     (0.09)                    |   | $    (0.11) |   | $   (0.05) |   | $     (0.10) |
|                                                                                                                     |                                                     |
|                                                                                                                     |
|                                                                                                                     |                                                     |
|                                                                                                                     | 2006                                                     |
|                                                                                                                     | First                                                    |   | Second |   | Third |   | Fourth |
|                                                                                                                     | Quarter                                                  |   | Quarter |   | Quarter |   | Quarter |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Operating      Revenues                                                                                                  | $        369,765 |   | $       978,340 |   | $   1,356,311 |   | $       2,532,307 |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Net      Income (Loss)                                                                                                   | $      (3,064,107)                                       |   | $      (3,240,179) |   | $      (2,673,198) |   | $     8,064,313* |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Net      Income (Loss) per Common Share                                                                                  | $     (0.13)                    |   | $    (0.14) |   | $   (0.11) |   | $     0.34 |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| *      In the fourth quarter we sold Tri-Western Resources and an associated      building for a net gain of $9,715,604. |                                                     |
|                                                                                                                     |                                                     |
|                                                                                                                     | 2005                                                     |
|                                                                                                                     | First                                                    |   | Second |   | Third |   | Fourth |
|                                                                                                                     | Quarter                                                  |   | Quarter |   | Quarter |   | Quarter |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Operating      Revenues                                                                                                  | $      202,108             |   | $   1,846,630 |   | $   6,781,574 |   | $        3,698,294 |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Net      Income (Loss)                                                                                                   | $      (3,375,111)                                       |   | $    (717,680) |   | $   (345,932) |   | $     (5,291,348) |
|                                                                                                                     |                                                     |   |   |   |   |   |   |
| Net      Income (Loss) per Common Share                                                                                  | $     (0.15)                    |   | $    (0.03) |   | $   (0.02) |   | $   (0.23) |
|                                                                                                                     |                                                     |
|                                                                                                                     |                                                     |

|   |    |   |                                                                                                                                                                                                                                                                                                                                               |
|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • |   | Pertain      to the maintenance of records that, in reasonable detail, accurately and      fairly reflect the transactions and dispositions of our      assets;                                                                                                                                                                                    |
|   |    |   |                                                                                                                                                                                                                                                                                                                                               |
|   | • |   | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of the financial statements in accordance with generally      accepted accounting principles, and that our receipts and expenditures are      being made only in accordance with authorizations of our management and      directors; and |
|   |    |   |                                                                                                                                                                                                                                                                                                                                               |
|   | • |   | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of our assets that could have      a material effect on the financialstatements.                                                                                                                                   |

----

----

|                                          |   |   |   | Year      First         |   |                                |
|-----------------------------------------------|--------|--------|--------|-------------------------|--------|-------------------------------------|
|                                          |   |   |   | Became      Director or |   | Position      With                  |
| Name      of Director                         |   | Age    |   | Executive      Officer  |   | Company                             |
|                                          |   |   |   |                    |   |                                |
| F.      Lynn Blystone                         |   | 72     |   | 1974                    |   | President,      CEO, Director, TVC  |
|                                          |   |   |   |                    |   | CEO      and Director, TVOG         |
|                                          |   |   |   |                    |   | President,      CEO, Director, TVPC |
|                                          |   |   |   |                    |   | CHOB,      CEO, Director Select     |
|                                          |   |   |   |                    |   |                                |
| Milton      J. Carlson(1)      (3)(4)         |   | 77     |   | 1985                    |   | Director                            |
|                                          |   |   |   |                    |   |                                |
| Loren      J. Miller(1)(6)                    |   | 62     |   | 1992                    |   | Director                            |
|                                          |   |   |   |                    |   |                                |
| Henry      Lowenstein, Ph.D(2)(3)             |   | 53     |   | 2005                    |   | Director                            |
|                                          |   |   |   |                    |   |                                |
| William      H.“Mo”Marumoto(2)(3) |   | 72     |   | 2005                    |   | Director                            |
|                                          |   |   |   |                    |   |                                |
| G.      Thomas Gamble(1)(2)(6)                |   | 46     |   | 2006                    |   | Director                            |
|                                          |   |   |   |                    |   |                                |
| Paul      W. Bateman(1)                       |   | 50     |   | 2007                    |   | Director                            |
|                                          |   |   |   |                    |   |                                |
| Edward      M. Gabriel(3)                     |   | 57     |   | 2007                    |   | Director                            |
|                                          |   |   |   |                    |   |                                |
|                                          |   |   |   |                    |   |                                |
| Thomas      J. Cunningham(5)                  |   | 65     |   | 1997                    |   | VP,      CAO, Treasurer and         |
|                                          |   |   |   |                    |   | Secretary,      TVC, TVOG, and TVPC |
|                                          |   |   |   |                    |   | Director      Select                |
|                                          |   |   |   |                    |   |                                |
| Arthur      M. Evans                          |   | 59     |   | 2005                    |   | Chief      Financial Officer        |
|                                          |   |   |   |                    |   |                                |
| Joseph      R. Kandle                         |   | 65     |   | 1999                    |   | President,      TVOG                |
|                                          |   |   |   |                    |   |                                |
| Robert      A. Bell                           |   | 49     |   | 2007                    |   | VP      of Operations, TVOG         |
|                                          |   |   |   |                    |   |                                |
| James      G. Bush                            |   | 58     |   | 2007                    |   | VP      of Exploration, TVOG        |
|                                          |   |   |   |                    |   |                                |

----

| F. Lynn Blystone - 72                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | President      and Chief Executive Officer of Tri-Valley Corporation and Tri-Valley Power      Corporation, CEO of Tri-Valley Oil & Gas Company and Select Resources      Corporation, which are three wholly owned subsidiaries of Tri-Valley      Corporation - Bakersfield, California | 1974   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |   |
| Mr.      Blystone became president of Tri-Valley Corporation in October, 1981, and      was nominally vice president from July to October, 1981.  His      background includes institution management, venture capital and various      management functions for a mainline pipeline contractor including the      Trans Alaska Pipeline Project.  He has founded, run and sold      companies in several fields including Learjet charter, commercial      construction, municipal finance and land development.  He is      also president of a family corporation, Bandera Land Company, Inc., with      real estate interests in  Orange County California.  A      graduate of Whittier College, California, he did graduate work at George      Williams College, Illinois in organization management.  He gives      full time to Tri-Valley and its subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |
| Milton J. Carlson – 77                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Director                                                                                                                                                                                                                                                                                      | 1985   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |   |
| Since      1989, Mr. Carlson has been a principal in Earthsong Corporation, which, in      part, consults on environmental matters and performs environmental audits      for government agencies and public and private concerns.  Mr.      Carlson attended the University of Colorado at Boulder and the University      of Denver.  Mr. Carlson is an independent member of our Board of      Directors.  His former career experience included being      corporate secretary of Union Sugar, a unit of Sara Lee Corporation and      chairman of the Energy End Users Committee of the California Manufacturers      Association.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |   |
| Loren J. Miller, CPA – 62                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Director                                                                                                                                                                                                                                                                                      | 1992   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |   |
| Mr.      Miller has served in a treasury and other senior financial capacities at      the Jankovich Company since 1994.  Prior to that he served      successively as vice president and chief financial officer of Hershey Oil      Corporation from 1987 to 1990 and Mock Resources from 1991 to      1992.  Prior to that he was vice president and general manager      of Tosco Production Finance Corporation from 1975 to 1986 and was a senior      auditor for the accounting firm of Touche Ross & Company from 1968 to      1973.  He is experienced in exploration, production, product      trading, refining and distribution as well as corporate      finance.  He holds a B.S. in accounting and a M.B.A. in finance      from the University of Southern California.  Mr. Miller is an      independent member of our Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |
| Henry Lowenstein, Ph.D - 53                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Director                                                                                                                                                                                                                                                                                      | 2005   |   |
| Dr.      Lowenstein is Dean and Professor of Management at the E. Craig Wall Sr.      College of Business Administration, Coastal Carolina University, Conway,      South Carolina. Prior to joining the Coastal Carolina University faculty      in 2007, he was Dean of Business and Public Administration at California      State University Bakersfield.   Dr. Lowenstein has broad      background in management within business, academic, government and public      service organizations.  He serves on the Pre-Accreditation      Committee of AACSB International, the top accreditation agency for      business schools worldwide. Previous academic positions include      universities in Illinois, Virginia and West Virginia. Dr. Lowenstein is      published in fields of human resource management, public policy and      transportation.  In business he was a corporate officer      for  Kemper Group-Insurance and Financial Services, Dominion      Bankshares Corporation, and  Americana Furniture,      Inc.  He previously served as a management analyst for the      Executive Office of the President of the United States-Office of      Management and Budget under the Gerald Ford Administration.  Dr.      Lowenstein received his Ph.D. in Labor and Industrial Relations from the      University of Illinois; an M.B.A. from George Washington University; and      B.S. in Business Administration from Virginia Commonwealth      University.  He serves on Tri-Valley's Personnel and      Compensation Committee and is Chairman of the Nominating and Corporate      Governance Committee.  Dr. Lowenstein is an independent member      of our Board of Directors.  |                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |   |
| William H. “Mo” Marumoto -    72                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Director                                                                                                                                                                                                                                                                                      | 2005   |   |
| Mr.      Marumoto has over 30 years experience in the executive and personnel      search profession as chairman and chief executive officer of his own      retained search firm, The Interface Group Ltd.  Here he was      named to the Global Top 200 Executive Recruiters and several other      worldwide professional awards and recognitions, according to the      company.  He has 40 years experience in public, private and      academic sectors.  He worked for three years as presidential      aide in the Nixon White House.  Earlier he was assistant to the      secretary of health, education and welfare.  Mr. Marumoto has      been part of boards of numerous organizations, colleges, public agencies      and businesses.  In 2002 he was appointed by President George W.      Bush to the advisory committee of the John F. Kennedy Center for the      Performing Arts.  Mr. Marumoto serves as Chair of our      Compensation committee and is an independent member of our Board of      Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |   |
| G. Thomas Gamble - 46                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Director                                                                                                                                                                                                                                                                                      | 2006   |   |
| A      graduate of UCLA, Mr. Gamble is a successful rancher and businessman with      current active investments in agriculture, food processing, educational      services, oil, gas and minerals.  In 2003, the California State      Senate proclaimed privately owned Davies and Gamble, which produces      critically acclaimed wines in California’s Napa Valley, its Green      Entrepreneur Of The Year, and in 2005, Mozzarella Fresca, the nation’s      premier producer of fresh Italian cheeses, of which he is a director and      original investor, received the Certificate of Special Congressional      Recognition as business of the year.  He is also a director and      original investor in Boston Reed College which provides educational      opportunities to busy adults seeking stable and growing careers in the      California health care industry.  Mr. Gamble is an independent      member of our Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |   |
| Paul W. Bateman - 50                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Director                                                                                                                                                                                                                                                                                      | 2007   |   |
| Mr.      Bateman is the President of the Klein & Saks Group, a Washington,      DC-based public affairs firm, that advises companies, industry      organizations and coalitions, principally in the mining and metals      industries, on the political, regulatory and public policy environment. He      joined the firm in 1994, and has been its chief executive since 1998.      Since March 2004, Mr. Bateman also has been President of the Economic Club      of New York, the nation’s leading nonpartisan policy forum. In 2005, Mr.      Bateman was elected Chairman and chief executive of the International      Cyanide Management Institute, which administers a voluntary industry      program aimed at improving the management of cyanide used in gold mining      and assisting in the protection of human health and the reduction of      environmental impacts. Mr. Bateman’s knowledge of the precious metals      industry is extensive, having earlier served as Executive Director of the      Silver Institute, an international association serving the silver      industry, and President of the Gold Institute, a North American industry      group. Mr. Bateman began his career in San Clemente, California in the      late 1970s, as an aide to then former President Richard Nixon. In 1981, he      joined the White House staff under President Reagan, and subsequently      served in that Administration in senior positions at the Departments of      Commerce and Treasury.  From 1989 to 1993, he served on      President George H.W. Bush’s White House staff as Deputy Assistant to the      President for Management.  Mr. Bateman is an independent member of      our board of directors.                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |
| Edward M. Gabriel - 57                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Director                                                                                                                                                                                                                                                                                      | 2007   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |
| Dr.      Gabriel is the former. U.S. Ambassador to Morocco and now President and      CEO of the Washington D.C. based public affairs firm, The Gabriel Company,      LLC.  Ambassador Gabriel brings a diverse background in a      variety of petroleum and other energy sources. Mr. Gabriel’s experience is      both domestic and international, with extensive relationships in U.S. and      Middle Eastern governments, as well as capital resources interested in      energy. He is on the advisory board of Guggenheim Partners, a private      wealth management firm. His career includes senior management positions      with firms such as CONCORD and Madison Public Affairs Group in which he      advised Fortune 100 Companies on multi-national matters in technology,      energy, banking, environmental, and tax policies. Ambassador Gabriel      served the Federal Energy Administration/U.S. Department of Energy as      Senior Economic Analysts. He serves as Member, Global Advisory Board of      George Washington University and Vice-Chairman of the American Task Force      for Lebanon. He is on the board of directors of the American School of      Tangier and the Casablanca American School. He is a graduate of Gannon      University, was awarded an honorary Doctorate of Laws from Gannon, and he      is a member of the University Economics Honor Society. Mr. Gabriel is an      independent member of our board of directors.                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |
| Thomas J. Cunningham - 65                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Secretary,      Treasurer and Chief Administrative Officer of Tri-Valley Corporation, and      its wholly owned subsidiaries, Tri-Valley Oil & Gas Company,      Tri-Valley Power Corporation and Select ResourcesCorporation,Bakersfield,      California                                | 1997   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |   |   |
| Named      as Tri-Valley Corporation’s treasurer and chief financial officer in      February 1997, and as corporate secretary on December 1998, promoted to      Chief Administrative Officer in November 2005.  From 1987 to      1997 he was a self employed management consultant in finance, marketing      and human resources.  Prior to that he was executive vice      president, chief financial officer and director for Star Resources from      1977 to 1987.  He was the controller for Tucker Drilling Company      from 1974 to 1977.  He has over 25 years experience in corporate      finance, Securities Exchange Commission public company reporting,      shareholder relations and employee benefits.  He received his      education from Angelo State University, Texas.  Mr. Cunningham      retired January 15, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                          |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Arthur M.  Evans, CPA, CMA, CFM -      59                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Chief      Financial Officer of Tri-Valley Corporation, and its wholly owned      subsidiaries, Tri-Valley Oil & Gas Company, Tri-Valley Power      Corporation, Select Resources Corporation and Great Valley Production      Services, Inc.Bakersfield,      California | 2005 |
|  Named      as Tri-Valley Corporation’s chief financial officer in November      2005.  Mr. Evans has a full range of accounting, mergers and      acquisitions and financial management experience in several industries as      well as oil, gas and mining and with Fortune 500 companies as well as      independents like Tri-Valley.  He held several senior financial      management positions with Getty Oil and Texaco.  He holds a B.S.      in accounting from Weber State University, a M.B.A. in finance from Golden      State University and a M.S. in systems management from the University of      Southern California.  His professional designations include      Certified Public Accountant, Certified Management Accountant and Certified      Financial Manager. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| Joseph R. Kandle - 65                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | President      and Chief Operating Officer Tri-Valley Oil & Gas Company, wholly owned      subsidiary of Tri-Valley Corporation Bakersfield,    California | 1998 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Mr.      Kandle was named as president of Tri-Valley Oil & Gas Co. February      1999 after joining the Company June 1998 as vice president - engineering.      From 1995 to 1998 he was employed as a petroleum engineer for R & R      Resources, self-employed as a consulting petroleum engineer from 1994 to      1995.  He was vice president - engineering for Atlantic Oil      Company from 1983 to 1994.  From 1981 to 1983 he was vice      president for Star Resources.  He was vice president and chief      engineer for Great Basins Petroleum from 1973 to 1981.  He began      his career with Mobil Oil (from 1965 to 1973) after graduating from the      Montana School of Mines in 1965.                                                                          |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Robert A. Bell - 49                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Vice      President of Operations Tri-Valley Oil & Gas Company, wholly owned      subsidiary of Tri-Valley Corporation Bakersfield,    California | 2007   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Mr.      Bell joined Tri-Valley in June 2007, and serves in a dual executive role      spanning TVOG and GVPS. Mr. Bell leads our oil and gas assets exploitation      operations, our engineering & field management personnel, and all      company-owned rig and shop/yard operations and      personnel.  Robert has over 26 years of domestic and      international experience in engineering and management that includes      both major and independent oil & gas companies as well as the service      sector.  He most recently served as V.P. of Exploitation and V.P. of      Operations for other California-based independents. Mr. Bell has field      development experience ranging from large-scale world class projects to      marginal/mature oil and gas developments, which includes the full      E&P spectrum spanning light and heavy oil to mature, gas production,      and from exploration conceptual engineering to full field development and      tertiary recovery. His domestic experience includes the areas of      California, Alaska, the Rockies, Texas (E/SE/S), and the Gulf      Coast/Gulf of Mexico.  His international residence experience      includes Perth, Australia and Quito, Ecuador.  Robert has      extensive training in French and Spanish languages, and has co-authored      several industry papers on state-of-the-art operations technology.       He is a Petroleum and Natural Gas Engineering graduate of Penn State      University, and is a member of SPE andAADE. |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| James G. Bush - 58                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Vice      President Exploration Tri-Valley Oil & Gas Company, wholly owned      subsidiary of Tri-Valley Corporation Bakersfield,    California | 2007   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Mr.      Bush joined the Company in June 2007.  Mr. Bush brings a wide      range of experience with over 30 years in the natural resource industry      (oil, gas, and minerals), the consulting business, and in heavy      industry.  Prior to Tri-Valley, Jim spent 10 years with the      Department of Energy’s Pacific Northwest National Laboratory, and the      previous 10 years with ICF Kaiser Engineers.  Prior to that, he      worked for Atlantic Richfield (on and off-shore Alaska and Texas), Aspen      Exploration, and the Anaconda Copper Co.  His areas of expertise      include oil and gas exploration and drilling, uranium exploration and      drilling, and metals exploration, with particular expertise in gold placer      exploration and mining (he was the finding geologist for Alaska’s recent      Valdez Creek gold mine).  Jim received his Bachelors of Science      degree in Geology from Ohio State University and his Masters of Science      from South Dakota School of Mines and Technology.  Jim is certified      by the American Institute of Professional Geologists, and is a registered      geologist in the States of Alaska and Washington.  It should be noted      that Jim also served three years in the U.S. Navy  Seabees. |

----

|   |
|--------|

|                      | Tri-Valley      Corporation          | Industry      Peer Group Average |
|---------------------------|--------------------------------------|----------------------------------|
| President/CEO             |                                 |                             |
| Base      Salary          | $159,000                             | $306,000                         |
| Bonus                     | 0                                    | $644,000                         |
| Stock/Options             | $   47,000            | $194,000                         |
| Other      Comp.          | $     5,000 | $127,000                         |
|                      |                                 |                             |
| TOTAL                     | $211,000                             | $1,078,000                       |
|                      |                                 |                             |
| Vice      President Level |                                 |                             |
| Base      Salary          | $131,000                             | $206,000                         |
| Bonus                     | 0                                    | $303,000                         |
| Stock/Options             | 0                                    | $147,000                         |
| Other      Comp.          | $     4,000 | $      16,000                    |
|                      |                                 |                             |
| TOTAL                     | $135,000                             | $620,000                         |

----

| (a)                               | (b)                           | ( c      )          | (d)                         | (e)                          | (f)                        |                          |
|-----------------------------------|-------------------------------|---------------------|-----------------------------|------------------------------|----------------------------|-------------------------------|
| Name                              |  Fiscal      Year Ending |   Salary  |  Stock      Awards (1) |  Option      Awards (2) | Company 401-K Contribution |  Total      Compensation |
|                              |                          |                |                        |                         |                       |                          |
| F.      Lynn                      | 12/31/07                      | $159,000            | $37,000                     | $0                           | $4,770                     | $200,770                      |
|   Blystone,      CEO    | 12/31/06                      | $159,000            | $47,450                     | $0                           | $4,770                     | $211,220                      |
|                              | 12/31/05                      | $159,000            | $38,900                     | $0                           | $2,782                     | $200,682                      |
|                              |                          |                |                        |                         |                       |                          |
| Thomas                            | 12/31/07                      | $135,000            | $0                          | $0                           | $4,050                     | $139,050                      |
|   Cunningham,      CAO  | 12/31/06                      | $130,833            | $0                          | $0                           | 3,925                      | $134,758                      |
|                              | 12/31/05                      | $115,000            | $0                          | $0                           | $2,012                     | $117,012                      |
|                              |                          |                |                        |                         |                       |                          |
| Arthur      M.                    | 12/31/07                      | $120,000            | $0                          | $17,000                      | $3,600                     | $140,600                      |
|   Evans,      CFO       | 12/31/06                      | $120,000            | $0                          | $56,550                      | $3,600                     | $180,150                      |
|                              | 12/31/05                      | $  15,000 | $0                          | $34,000                      | $450                       | $  49,450           |
|                              |                          |                |                        |                         |                       |                          |
| Joseph  Kandle,         | 12/31/07                      | $170,000            | $0                          | $0                           | $5,100                     | $175,100                      |
|    Pres.      TVOG | 12/31/06                      | $163,333            | $0                          | $0                           | $5,875                     | $169,208                      |
|                              | 12/31/05                      | $150,000            | $0                          | $0                           | $2,625                     | $152,625                      |
|                              |                          |                |                        |                         |                       |                          |
| Robert      A. Bell,              | 12/31/07                      | $83,125             | $0                          | $144,990                     | $2,494                     | $230,609                      |
| Vice      Pres. Operations, TVOG  |                          |                |                        |                         |                       |                          |
|                              |                          |                |                        |                         |                       |                          |
| James      G. Bush,               | 12/31/07                      | $112,560            | $0                          | $96,000                      | $3,377                     | $211,937                      |
| Vice      Pres. Exploration, TVOG |                          |                |                        |                         |                       |                          |

| (      a )                                | (b)                                      | (c)                     | (d)                                                                                                  | (e)                                                                                              |
|-------------------------------------------|------------------------------------------|-------------------------|------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| Name                                      | Shares      AcquiredOn      Exercise (#) | Value      Realized ($) | Number      of SecuritiesUnderlying      UnexercisedOptions      at FY End Exercisable/Unexercisable | Value      of Unexercised InThe      Money Options at FY End ($)Excercisable/      Unexercisable |
|                                      |                                     |                    |                                                                                                 |                                                                                             |
| F.      Lynn Blystone                     | 47,500                                   | $341,640                | 729,350/0                                                                                            | $4,378,015/$0                                                                                    |
| Milton      Carlson                       |                                     |                    | 240,000/0                                                                                            | $0/$0                                                                                            |
| Thomas      J. Cunningham                 | 0                                        | 0                       | 523,000/0                                                                                            | $3,215,450/$0                                                                                    |
| Arthur      M. Evans                      | 0                                        | 0                       | 35,000/10,000                                                                                        | $7,800/$0                                                                                        |
| G.      Thomas Gamble                     | 0                                        | 0                       | 40,000/40,000                                                                                        | $42,000/$42,000                                                                                  |
| Paul      W. Bateman                      |                                     |                    | 20,000/80,000                                                                                        | $18,200/$72,800                                                                                  |
| Edward      M. Gabriel                    |                                     |                    | 20,000/80,000                                                                                        | $20,600/$82,400                                                                                  |
| Joseph      R. Kandle                     | 50,000                                   | $335,500                | 475,000/0                                                                                            | $2,614,250/0                                                                                     |
| Robert      A. Bell                       |                                     |                    | 27,000/108,000                                                                                       | $0/$0                                                                                            |
| James      G. Bush                        |                                     |                    | 20,000/110,000                                                                                       | $0/$0                                                                                            |
| Henry      Lowenstein                     |                                     |                    | 60,000/40,000                                                                                        | $63,800/$42,000                                                                                  |
| Loren      J.Miller                       | 0                                        | 0                       | 0/0                                                                                                  | $0/0                                                                                             |
| William      H. “Mo” Marumoto | 0                                        | 0                       | 60,000/40,000                                                                                        | $63,800/$42,000                                                                                  |
|                                      |                                     |                    |                                                                                                 |                                                                                             |

|                   |   |                    |    |   |                 |   |                |   |   |               |   |       |   |                                               |   |   |   |   |
|------------------------|--------|-------------------------|---------|--------|----------------------|--------|---------------------|--------|--------|--------------------|--------|------------|--------|----------------------------------------------------|--------|--------|--------|--------|
|                   |   |                    |    |   | %      of Total      |   |                |   |   | Market      Value  |   |       |   |
|                   |   | Number      of Shares   |    |   | Options      Granted |   | Exercise      Price |   |   | of      Securities |   |       |   |
|                   |   | Underlying      Options |    |   | to      Employees    |   | Per      Share      |   |   | Underlying         |   | Expiration |   |
| Name                   |   | Granted                 |    |   | in Fiscal      Year  |   | ($/Security)        |   |   | Options(3)         |   | Date       |   |
|                   |   |                    |    |   |                 |   |                |   |   |               |   |       |   |                                               |   |   |   |   |
| Robert      A. Bell(1) |   |                    | 135,000 |   |                 |   | 23.5%               |   |   | $8.81              |   |       |   |         $0 |   |   | 6/2017 |   |
|                   |   |                    |    |   |                 |   |                |   |   |               |   |       |   |                                               |   |   |   |   |
| James      G. Bush(2)  |   |                    | 130,000 |   |                 |   | 22.6%               |   |   | $7.88              |   |       |   |         $0 |   |   | 5/2017 |   |

| (1)       | The      options were granted June 5, 2007 and 27,000 options were vested as of      December 31, 2007                                |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                  |
| (((2)     | The      options were granted May 23, 2007 and 20,000 options were vested as of      December 31, 2007                                |
|  (3) | Based      on the difference between the exercise price per share and the market      price of $7.40 per share as of December 31,2007 |

| Name                      | Number      of Securities Underlying | Option      Exercise | Option      Expiration |
|---------------------------|--------------------------------------|----------------------|------------------------|
|                      | Unexercised      Options             | Price                | Date                   |
|                      | Exercisable                          | Unexercisable        |                   |   |
| ( a      )                | (b)                                  | (c)                  | (d)                    | (e) |
|                      |                                 |                 |                   |   |
| Paul      W. Bateman      | 20,000                               | 80,000               | $6.37                  | 8/2/2017 |
|                      |                                 |                 |                   |   |
| Robert      A. Bell       | 27,000                               | 108,000              | $8.81                  | 6/5/2017 |
|                      |                                 |                 |                   |   |
| F.      Lynn Blystone     | 100,000                              | 0                    | $2.00                  | 8/22/2008 |
|                      | 79,350                               | 0                    | $0.50                  | 6/19/2009 |
|                      | 50,000                               | 0                    | $2.43                  | 9/16/2010 |
|                      | 200,000                              | 0                    | $1.22                  | 11/10/2010 |
|                      | 300,000                              | 0                    | $1.35                  | 10/22/2011 |
|                      |                                 |                 |                   |   |
| James      G. Bush        | 20,000                               | 110,000              | $7.88                  | 5/23/2017 |
|                      |                                 |                 |                   |   |
| Milton      Carlson       | 40,000                               | 0                    | $0.55                  | 8/22/2008 |
|                      | 50,000                               | 0                    | $2.43                  | 9/16/2010 |
|                      | 100,000                              | 0                    | $1.22                  | 11/10//2010 |
|                      | 50,000                               | 0                    | $1.35                  | 10/22/2011 |
|                      |                                 |                 |                   |   |
| Thomas      J. Cunningham | 100,000                              | 0                    | $1.50                  | 8/22/2008 |
|                      | 98,000                               | 0                    | $0.50                  | 6/19/2009 |
|                      | 50,000                               | 0                    | $1.00                  | 9/1/2009 |
|                      | 50,000                               | 0                    | $2.43                  | 9/16/2010 |
|                      | 150,000                              | 0                    | $1.22                  | 11/10/2010 |
|                      | 75,000                               | 0                    | $1.35                  | 10/22/2011 |
|                      |                                 |                 |                   |   |
| Arthur      M. Evans      | 30,000                               | 10,000               | $9.55                  | 11/18/2015 |
|                      | 5,000                                | 0                    | $5.84                  | 8/15/2016 |
|                      |                                 |                 |                   |   |
| Edward      M. Gabriel    | 20,000                               | 80,000               | $6.49                  | 8/1/2017 |
|                      |                                 |                 |                   |   |
| G.      Thomas Gamble     | 40,000                               | 40,000               | $6.35                  | 5/8/2016 |
|                      |                                 |                 |                   |   |
| Joseph      R. Kandle     | 100,000                              | 0                    | $0.50                  | 6/19/2009 |
|                      | 100,000                              | 0                    | $1.00                  | 9/1/2009 |
|                      | 50,000                               | 0                    | $2.43                  | 9/16/2010 |
|                      | 150,000                              | 0                    | $1.22                  | 11/10/2010 |
|                      | 75,000                               | 0                    | $1.35                  | 10/22/2011 |
|                      |                                 |                 |                   |   |
| Henry      Lowenstein     | 60,000                               | 40,000               | $6.35                  | 5/8/2016 |
|                      |                                 |                 |                   |   |
| Loren      J. Miller      | 0                                    | 0                    | 0                      | 0 |
|                      |                                 |                 |                   |   |
| William      H. Marumoto  | 60,000                               | 40,000               | $6.35                  | 5/8/2016 |

----

| (a)                       | (b)           | (c)                   | (d)                   | (e)               |
|---------------------------|---------------|-----------------------|-----------------------|-------------------|
| Name                      | Fees          | Stock      Awards (1) | Option      Awards(2) | TotalCompensation |
|                      |          |                  |                  |              |
| Paul      W. Bateman      | $      3,000  |                  | $40,200               | $43,200           |
|                      |          |                  |                  |              |
| Milton      Carlson       | $      9,500  | $14,500               | -                     | $24,000           |
|                      |          |                  |                  |              |
| Edward      M. Gabriel    | 0             |                  | $40,800               | $40,800           |
|                      |          |                  |                  |              |
| G.      Thomas Gamble     | $      10,000 | $14,500               | $98,000               | $122,500          |
|                      |          |                  |                  |              |
|                      |          |                  |                  |              |
|                      |          |                  |                  |              |
| Dr.      Henry Lowenstein | $      7,200  | $14,500               | $98,000               | $119,700          |
|                      |          |                  |                  |              |
| Loren      J. Miller      | $      9,500  | $14,500               | -                     | $24,000           |
|                      |          |                  |                  |              |
| William      Marumoto     | $      7,400  | $14,500               | $98,000               | $119,900          |

----

|                                                                             |   | Number      of                                                           |   | Percent      of |
|----------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|-----------------|
| Name and Address                                                                 |   | Shares                                                                   |   | Total           |
|                                                                             |   |                                                                     |   |            |
| F.      Lynn BlystoneP.O.      Box 1105Bakersfield,      CA 93302                |   |           1,227,853(1) |   | 4.8%            |
|                                                                             |   |                                                                     |   |            |
| G.      Thomas Gamble1250      Church StreetSt.      Helena, CA  94574 |   |          2,183,834(2)       |   | 8.7%            |

| (1)   | Includes      729,350 shares of stock Mr. Blystone has the right to acquire upon the      exercise of options. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (2)   | Includes      96,667 shares of stock Mr. Gamble has the right to acquire upon the      exercise of warrants and options. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

|                                      |   | Number      of |   | Percent      of |
|-------------------------------------------|--------|----------------|--------|-----------------|
| Directors and Executive      Officers     |   | Shares(1)      |   | Total(2)        |
|                                      |   |           |   |            |
| F.      Lynn Blystone                     |   | 1,227,853      |   | 4.8%            |
|                                      |   |           |   |            |
| Milton      J. Carlson                    |   | 347,000        |   | 1.4%            |
|                                      |   |           |   |            |
| Thomas      J. Cunningham                 |   | 540,000        |   | 2.1%            |
|                                      |   |           |   |            |
| Arthur      M. Evans                      |   | 45,000         |   | 0.2%            |
|                                      |   |           |   |            |
| G.      Thomas Gamble                     |   | 2,183,834      |   | 8.7%            |
|                                      |   |           |   |            |
| Paul      W. Bateman                      |   | 101,000        |   | 0.4%            |
|                                      |   |           |   |            |
| Edward      M. Gabriel                    |   | 100,000        |   | 0.4%            |
|                                      |   |           |   |            |
| Joseph      R. Kandle                     |   | 500,000        |   | 2.0%            |
|                                      |   |           |   |            |
| Robert      A. Bell                       |   | 135,000        |   | 0.5%            |
|                                      |   |           |   |            |
| James      G. Bush                        |   | 130,000        |   | 0.5%            |
|                                      |   |           |   |            |
| Henry      Lowenstein, Ph.D.              |   | 102,200        |   | 0.4%            |
|                                      |   |           |   |            |
| William      H. “Mo” Marumoto |   | 102,000        |   | 0.4%            |
|                                      |   |           |   |            |
| Loren      J. Miller                      |   | 295,800        |   | 1.2%            |

----

|                                              |   | Number      of |   | Percent      of |
|---------------------------------------------------|--------|----------------|--------|-----------------|
|                                              |   | Shares(1)      |   | Total(2)        |
| Total group (all directors    and                 |   |           |   |            |
|   Executive      officers - 13 persons) |   | 5,608,687      |   | 22.1%           |

| (1)   | Includes      shares which the listed shareholder has the right to acquire from options      as follows:  F. Lynn Blystone 729,350, Milton J. Carlson      240,000, Thomas J. Cunningham 523,000, Arthur M. Evans 45,000, G. Thomas      Gamble  96,667, Joseph R. Kandle 475,000;  Dr. Henry      Lowenstein 100,000, William H. ”Mo” Marumoto  100,000 |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Based      on total outstanding shares of 25,077,184 as of December 31,      2007.  The persons named herein have sole voting and investment      power with respect to all shares of common stock shown as beneficially      owned by them, subject to community property laws where      applicable. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| YEAR | AUDIT      SERVICES | TAX      SERVICES | AUDIT      RELATED |
|------|---------------------|-------------------|--------------------|
| 2007 | $      132,592      | $60,390           | $54,202            |
| 2006 | $  85,417 | $43,925           | $28,177            |

----

| Exhibit |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  | Description      of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.1     | Amended      and Restated Certificate of Incorporation, incorporated by reference to      Exhibit A of the Company’s 2000 Proxy Statement and Definitive Schedule      14A, filed with the SEC on July 26, 2000.                                                                                                                                                                                                                                                                            |
| 3.2     | Amended      and Restated Bylaws, incorporated by reference to Exhibit 3.3 of the      Company's Form 10-Q for the quarter ended September 30, 2007, filed with      the SEC on November 9, 2007.                                                                                                                                                                                                                                                                                                 |
| 4.1     | Rights      Agreement, incorporated by reference to Exhibit 99.1 of the Company’s Form      10-KSB for the year ended December 31, 1999, filed with the SEC on March      24, 2000.                                                                                                                                                                                                                                                                                                         |
| 10.1    | Employment      Agreement with F. Lynn Blystone, incorporated by reference to Exhibit 10.1      of the Company's Form 10-KSB/A, Amendment No. 3 to Form 10-KSB for the      year ended December 31, 2000, filed with the SEC on December 14,      2001.                                                                                                                                                                                                                                           |
| 10.2    | Tri-Valley      Corporation 2005 Stock Option Plan, as amended, incorporated by reference      to Exhibit A of the Company’s 2007 Proxy Statement and Definitive Schedule      14A, filed with the SEC on August 2, 2007.                                                                                                                                                                                                                                                                   |
| 10.3    | Purchase      and Sale Agreement between Brea Oil Company, Brea Properties, Inc., Kurt      Sickles, Geraldine M. Barker, as Trustee of the Barker Bypass Trust under      the Barker Trust, dated January 21, 1999, Geraldine M. Barker and      Alexander W. Barker, as Co-Trustees of the Barker Trust dated January 21,      1999, and Tri-Valley Oil and Gas Co., incorporated by reference to Exhibit      2.1 of the Company’s Form 8-K filed with the SEC on January 10,      2006. |
| 14.1    | Code      of Business Conduct & Ethics, incorporated by reference to Exhibit      14.1 of the Company’s Form 10-K filed with the SEC on April 2,      2007                                                                                                                                                                                                                                                                                                                              |
| 21.1    | Subsidiaries      of the Registrant, incorporated by reference to Exhibit 21.1 of the      Company’s Form 10-K filed with the SEC on April 2, 2007                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |
| 31.1    | Certification      Pursuant to Rule 13a-14(a) /  15d-14(a)                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.2    | Certification      Pursuant to Rule 13a-14(a) /  15d-14(a)                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.1    | Certification      Pursuant to 18 U.S.C. §1350.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.2    | Certification      Pursuant to 18 U.S.C. §1350.                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| March      14, 2008 | By:  F. Lynn      Blystone                                                  |
|---------------------|---------------------------------------------------------------------------------------|
|                |        F.      Lynn Blystone                       |
|                |        President,      Chief Executive Officer and |
|                |        Director                                    |
|                |                                                                                  |
|                |                                                                                  |
| March      14, 2008 | By:  /s/ Arthur M.      Evans                                               |
|                |        Arthur      M. Evans                        |
|                |        Chief      Financial Officer                |

|   |                           |   |                                                                                          |
|--------|--------------------------------|--------|-----------------------------------------------------------------------------------------------|
|   |                           |   |                                                                                          |
|   | March  14,      2008 |   | By:  /s/  Paul      W. Bateman                                            |
|   |                           |   |        Paul      W. Bateman, Director                      |
|   |                           |   |                                                                                          |
|   |                           |   |                                                                                          |
|   | March  14,      2008 |   | By:      /s/  Edward M. Gabriel                                                     |
|   |                           |   |        Edward      M. Gabriel, Director                    |
|   |                           |   |                                                                                          |
|   |                           |   |                                                                                          |
|   | March  14,      2008 |   | By:      /s/  G. Thomas Gamble                                                      |
|   |                           |   |        G.      Thomas Gamble, Director                     |
|   |                           |   |                                                                                          |
|   |                           |   |                                                                                          |
|   | March  14,      2008 |   | By:      /s/  Henry Lowenstein                                                      |
|   |                           |   |        Henry      Lowenstein, Ph.D,Director                |
|   |                           |   |                                                                                          |
|   |                           |   |                                                                                          |
|   | March  14,      2008 |   | By:      /s/  William H. Marumoto                                                   |
|   |                           |   |        William      H. “Mo” Marumoto, Director |
|   |                           |   |                                                                                          |
|   |                           |   |                                                                                          |
|   | March  14,      2008 |   | By:      /s/  Loren J. Miller                                                       |
|   |                           |   |        Loren      J. Miller, Director                      |

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